Clearing all legal complication, Adani Power finally manages to acquire Lanco Infratech’s 1,200 MW Udupi Power Plant.
Adani Power, India’s number 1 private thermal power producer, finally succeeded in acquiring Udupi Power Plant, this Monday. The plant is an imported coal based thermal power project, with a total capacity of around 2 X 600 MW (1200 MW), under Lanco Infratech group.
This INR 6,300 crore deal between the two power players was signed in August 2014, and is reported to be the biggest deal in the history of Indian thermal power space. But due to some legal issues prevailing between the two, this deal was finally closed on April 15, after a delay of almost eight months .
According to Lanco, this is India’s first imported coal operated thermal power project and has a fuel capacity of 4 MnT. 85% of the fuel capacity is imported from Indonesia and rest from International Competitive Bidding (ICB) and spot purchase. The company added that power generation capacity of the plant can be increased by about 1320 MW in near future, as an agreement has already been signed with Karnataka government.
The sources say that with the completion of this deal, Lanco Infratech will be able to cut down its long term debt to INR 4,275 and short-term debt to INR 2,147 crore simultaneously.
Adani Power claimed that with the takeover of this power project, their power generation capacity will be increased to 10440 MW from around 9000 MW.
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