BHUBANESWAR: Even as the State government has exercised its right of first refusal (RoFR) to buy out 49 per cent (pc) equity share of US-based AES Corporation in Odisha Power Generation Corporation (OPGC), the transfer of shares worth $ 135 million has not been possible due to delay in approval of the Competition Commission of India (CCI).
The government, which holds 51 pc stake in OPGC, derailed the move of Adani Power Limited (APL) to acquire AES stake in the joint venture company by invoking its RoFR in August-end. As per RoFR agreement, the State will have to make payment of the agreed share value to AES within 90 days of the offer.
“The last date for payment of the 49 pc share value to AES expired on November 26. Payment to the overseas company was not possible as the government is waiting for CCI approval for the proposed transaction,” sources familiar with the development said.
“The Energy department moved the CCI for approval in the second week of November. The commission takes maximum 30 days time for giving approval. It should have taken less time as the transaction is with a State government,” the sources said.
The State-owned Odisha Hydro Power Corporation (OHPC) will acquire the AES stake in OPGC estimated at around Rs 1,000 crore. The RoFR deal with AES will complete after transfer of share certificates followed by constitution of a new Board of Directors of OPGC.
The OPGC is operating a 1,740-MW coal-fired power plant at Banharpalli in Jharsuguda district. In June this year, AES had entered into a Share Sale and Purchase Agreement (SSPA) with Adani Power for sale of 89,30,237 equity shares held in OPGC for $ 135 million.