Adani Power announced that the National Company Law Tribunal (NCLT) Hyderabad bench has approved its plan to acquire Lanco Amarkantak Power Ltd (LAPL) for an upfront payment of Rs 41.01 billion. LAPL, currently undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, will be fully acquired by Adani Power, which will take 100% ownership for a cash consideration.
LAPL operates a 600 MW thermal power plant (2x300 MW) in Pathadi Village, Korba District, Chhattisgarh. The majority of the electricity produced from this plant is supplied to Haryana and Madhya Pradesh distribution companies under long-term power purchase agreements facilitated by Power Trading Corporation Ltd. LAPL also has a long-term fuel supply agreement with South Eastern Coalfields Ltd, a subsidiary of Coal India Limited, for 2.784 MMT of coal.
In addition to its current operations, LAPL is in the process of expanding its capacity with a 1,320 MW (2x660 MW) plant under Phase II. The acquisition by Adani Power is expected to be completed within 60 days from the NCLT's approval, by October 20, 2024.
The acquisition aligns with Adani Power's core business of power generation and will strengthen its position as India's leading private sector power producer, bringing its total operational generation capacity to 15,850 MW. (ET)
