Anil Aggarwal-led Vedanta has received NCLT approval for buying out the stressed asset of Meenakshi Energy for ₹1,440 crore.

Vedanta will acquire 100 per cent paid-up capital and management control of Meenakshi Energy, said the company in a statement on Thursday.

Vedanta’s plans to acquire Meenakshi Energy via the insolvency resolution procedure has been approved by National Company Law Tribunal (NCLT) Hyderabad Bench. In January, Vedanta was declared as successful bidder for debt-ridden company.

Power purchase agreements

Meenakshi Energy has a 1,000 MW coal-based power plant in Nellore, Andhra Pradesh. Vedanta plans to operate the power plant as an independent power producer and will enter into power purchase agreements with customers.

Vedanta will pay ₹312 crore upfront and balance ₹1,128 crore in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy to the financial creditors.

The consideration will mature in five equal instalments over a period of five years. Vedanta, one of the world’s foremost natural resources conglomerates, with primary interests in aluminium, zinc-lead-silver, oil and gas, iron ore, steel, copper, power, ferro alloys, nickel, semiconductor and glass. With strategic assets based across India, South Africa, Namibia and Liberia, Vedanta net profit after tax at ₹3,308 crore in June quarter.

Shares of Vedanta was down one per cent at ₹234 on Thursday.