Adani Power said on Monday it has been awarded the letter of intent (LoI) for Korba West Power Company (KWPCL) that owns and operates a 600 MW thermal power plant in Chhattisgarh’s Raigarh district.
The Committee of Creditors (CoC) of KWPCL—that was undergoing insolvency resolution process under the Insolvency and Bankruptcy Code, 201— has approved the resolution plan submitted by Adani Power, it said in an exchange filing.
Shares of Adani Power ended Monday’s trading session 0.80% up at `50.15 on the BSE. The resolution professional (RP) appointed by the National Company Law Tribunal, Ahmedabad, has issued a LoI, dated April 6, to the company. “The closure of the transaction shall be subject to obtaining the necessary approval from the NCLT, Ahmedabad, and satisfaction of the conditions precedent under the resolution plan,” the release said. Adani Power (APL) indicated that successful acquisition and implementation of the resolution plan for the acquisition of KWPCL will consolidate APL’s position as India’s leading private sector thermal power producer, with a combined thermal power capacity of 11,040 MW. “Further, this reaffirms APL’s credential in developing operation of greenfield projects, and also successfully turning around brownfield acquisitions,” it said.