NEW DELHI: Adani Power has received a letter of intent to acquire debt-ridden Korba West Power Company, which was undergoing an insolvency resolution programme.
“The company has been awarded the letter of intent (LoI) for Korba West Power Company Ltd (KWPCL). The Committee of Creditors of KWPCL, a company undergoing insolvency resolution process under the Insolvency and Bankruptcy Code, 2016, has approved the resolution plan submitted by Adani Power,” Adani Power said in a BSE filing.
KWPCL owns and operates a 600-megawatt thermal power plant in Raigarh district of Chhattisgarh. Adani Group recently secured the rights to develop and operate two coal blocks—the Gidhmuri and Paturia coal blocks in Korba district.
Adani Power said the successful acquisition and implementation of the resolution plan for acquisition of KWPCL will consolidate its position as India’s leading private sector thermal power producer, with a combined thermal power capacity of 11,040 MW.
“Further, this reaffirms Adani Power’s credential in development and operation of greenfield projects, and also successfully turning around brownfield acquisitions,” the company said.
The closure of the transaction shall be subject to obtaining the necessary approval from the National Company Law Tribunal, Ahmedabad, and satisfaction of the conditions precedent under the resolution plan, the company added.
Earlier too Adani Power has expressed interest in stressed power assets. It had bid for KSK Mahanadi, with a debt of Rs 17,194 crore. However, the company later withdrew its bid. The company is considering the acquisition of GMR Chhattisgarh, which has a debt of Rs 8,174 crore.