Adani Power to acquire 49% stake in Odisha Power for Rs 1,019 crore

New Delhi: Adani Group said on Tuesday that Adani Power will acquire 49 percent of AES Corporation's stake in Odisha Power Generation Corporation for USD 135 million (around Rs 1,019 crore).

“Adani Power Ltd (APL) has signed a final agreement to acquire a 49 percent stake in Odisha Power Generation Corporation (OPGC) from affiliates of AES Corporation (AES), the US-based global energy company,” a regulatory filing said.

Adani Power will acquire a total of 89,30,237 equity shares held in OPGC, representing 49 percent of the total issued, paid up, and subscribed equity share capital of OPGC, for USD 135 million.

OPGC operates a 1,740 MW thermal power plant at Banharpalli in Jharsuguda district, Odisha.

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This plant is the mainstay of Odisha's state to supply the basic load energy and is among the lowest cost power generated in the state. The supercritical capacity of 1,320 MW  is a recently commissioned modern plant with a low carbon footprint.

The plant has a 25-year long-term power purchase agreement (PPA) valid for 25 years with the state-owned off-taker GRIDCO and sources fuel from a nearby captive mine.

The Odisha government owns a 51 percent stake in OPGC.

The acquisition also marks the APL foray into Odisha state and demonstrates Adani Group's long-term commitment to develop and operate high-quality infrastructure in the state it said.

He added that AES and Adani Group will continue to partner to facilitate the delivery of renewable energy and energy storage in India.

He added that the Transaction is subject to customary regulatory approvals, including compliance with the applicable requirements in place regarding the Odisha government and receipt of regulatory approvals such as the Competition Commission of India and the Reserve Bank of India.

The turnover of OPGC during 2018-19 was Rs 887.71 crore.

Source: Economics Times

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