Adani Power on Thursday said NCLT Hyderabad bank has approved its plan to acquire Lanco Amarkantak Power Ltd (LAPL) for an initial consideration of Rs 4,101 crore.
LAPL is under the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, according to a filing with the BSE.
According to the document, the acquisition will be subject to compliance with the conditions precedent mentioned in the resolution plan.
Adani Power will acquire 100 percent of LAPL shares in exchange for a cash consideration, the filing said.
LAPL owns and operates a 2×300 MW (600 MW) Thermal Power Plant (Phase I) at Pathadi Village in Korba District of Chhattisgarh.
Most of the power generated from Phase I capacity is supplied to power distribution companies in Haryana and Madhya Pradesh through long-term power purchase agreements (PPAs) through Power Trading Corporation Ltd.
It has a long-term fuel supply agreement for 2,784 MMT with Coal India Limited’s subsidiary, South Eastern Coalfields Ltd (SECL).
LAPL is also installing an expansion capacity of 2×660 MW (1320 MW) in Phase II.
The acquisition is to be completed within 60 days from the date of the National Company Law Tribunal’s approval order on October 20, 2024.
The purpose of LAPL, being the generation of energy, is in line with the company’s main line of business.
The successful acquisition and implementation of the resolution plan for the acquisition of LAPL will boost APL’s position as India’s leading private sector power producer with a combined operational power generation capacity of 15,850 MW, it said.
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