Adani Power, which acquired Udupi Power Corporation (UPCL) from Lanco Infratech early last year, is set to expand its capacity to 2,800 MW from the present 1,200 MW...
Adani Power, which acquired Udupi Power Corporation (UPCL) from Lanco Infratech early last year, is set to expand its capacity to 2,800 MW from the present 1,200 MW at an estimated investment of Rs 11,500 crore. The company plans to set up two more units of 800 MW each near Udupi to raise capacity.
“We have just received the approval from the State High Level Clearance Committee (SHLCC) of Karnataka government for our proposal. We will be signing a memorandum of understanding (MoU) with the state government very soon. We still require many other approvals including one from the ministry of environment,” Kishore Alva, executive director, UPCL told FE.
He said the company would be funding the project through a mix of debt and equity, yet to be decided. “The debt to equity ratio will be decided once we sign a power purchase agreement with the state government,” Alva said.
UPCL, for the first phase of the project, had borrowed 76% of the project cost of Rs 5,800 crore from a consortium of bankers led by Power Finance Corporation.
Last year, Adani Power acquired UPCL from Lanco Infratech at an enterprise valuation of Rs 6,300 crore in one of the biggest deals in power sector. Adani took over Rs 4,000 crore debt of UPCL, while paying out another Rs 2,000 crore cash to Lanco.
Currently, UPCL is generating 1,200 MW thermal power using imported coal at Nandikur near Udupi in Karnataka and the entire power is supplied to electricity companies in the state. UPCL had signed power purchase agreement with Karnataka to sell 90% of generated power and with Punjab for 10%.