Adani Power to buy Avantha unit Korba West Power for Rs 4,200 cr
New Delhi: Adani Power Ltd., a subsidiary of Adani Enterprises Ltd. and part of Adani Group, will acquire Korba West Power (KWP), a wholly owned subsidiary of Avantha Power.
KWP has commissioned a coal-based power plant of 600 MW in Chhattisgarh and is implementing another 600 MW in the second phase. KWP is valued in excess of Rs 4,200 crore.
"Adani Power will look to expand the capacity of KWP by leveraging its project execution capabilities and provide much needed energy security of India," the company said.
"The acquisition consolidates our pan-India presence and further re-affirms our belief in the reforms processes under way in the power and coal mining sectors. The acquisition of KWPCL expands our footprint in India particularly in the coal mining belt of India and we are bullish of expanding our presence further in the country. We are committed towards contributing towards India's growth and confident of achieving our target of generating 20,000 MW by 2020."
Adani Power is India's largest private sector power generation company with a current operational capacity of 9,240 MW, comprising of 4,620 MW at Mundra in Gujarat, 3,300 MW at Tiroda in Maharashtra and 1,320 MW at Kawai in Rajasthan.
For the Adani group, the acquisition will further consolidate its position as an independent power producer in the country. It said with the acquisition of the 1200 MW Udipi power plant and now the Korba plant, its capacity will rise to 11,040 MW.
"The acquisition consolidates our pan-India presence. We are confident of achieving our target of generating 20,000 MW by 2020," said Gautam Adani, chairman of Adani Group in a statement.