With Adani Power acquiring Lanco Infratech’s Udupi plant, the Gujarat-based company’s installed capacity will increase to 10,440 megawatt (MW).
Adani Power Ltd (APL) is the largest private sector power generation company in India.
APL, a subsidiary of Adani Enterprises Ltd, on Thursday said it had executed a definitive agreement for acquisition of 100% shares of the 1,200 MW Udupi Power Corporation Ltd from LancoInfratech Ltd in a deal valued at more than Rs 6,000 crore. The Udupi plant’s capacity is likely to be ramped up soon by another 1,320 MW, with fuel linkages being discussed.
Currently, APL’s installed capacity is capacity 8,580 MW, comprising of 4,620 MW at Mundra in Gujarat, 2,640 MW at Tiroda in Maharashtra and 1,320 MW at Kawai in Rajasthan. With one more unit of 660 MW commissioning at Tiroda shortly and the acquisition of 1,200 MW Udupi power plant, the installed base of APL will increase to 10,440 MW, getting Adani Power closer to its goal of achieving 20,000 MW of capacity by 2020.
“Now is the time for consolidation in the Indian power sector. As a leading private power producer, Adani Power, has taken the lead and acquired the Udupi thermal project. This marks our entry into southern India and we are bullish of expanding our presence further in the country,” said Gautam Adani, Chairman, Adani Group, here.
The Udupi power plant is an operational power project based on 100 per cent imported coal with a captive jetty of 4 million tons per annum (MTPA). The project supplies 90 per cent of the power generated to Karnataka and 10 per cent to Punjab.
An agreement for expansion of the plant’s capacity by 1,320 MW capacity has already been executed with the Government of Karnataka.
The acquisition of Udupi thermal power station in Karnataka is a “strategic fit” to the integrated infrastructure business model of the Adani Group and establishes Adani Power’s presence in southern India.
“Adani Power will endeavor to expand the capacity at Udupi expeditiously, leveraging its project execution capabilities. Adani Power is also committed to seize further opportunities for capacity addition and provide much needed energy security to southern India, Adani said,
Macquarie Capital was the lead advisor to the transaction along with SBI Caps.