Adani Power to Buy Lanco Amarkantak for Rs 4,101 Cr Following NCLT Approval

Adani Power announced on Thursday that the National Company Law Tribunal (NCLT) in Hyderabad has approved its plan to acquire Lanco Amarkantak Power Ltd (LAPL) for Rs 4,101 crore. LAPL is currently undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, as stated in a BSE filing.

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The acquisition involves Adani Power obtaining 100% shareholding in LAPL for a cash consideration. The completion of this acquisition is contingent upon meeting certain conditions outlined in the resolution plan. The transaction is expected to be finalised within 60 days from the NCLT's approval order, by October 20, 2024.

Thermal Power Plant Operations

LAPL operates a 2x300 MW (600 MW) thermal power plant in Pathadi Village, Korba District, Chhattisgarh. Most of the power generated from this Phase-I capacity is supplied to Haryana and Madhya Pradesh Discoms through long-term power purchase agreements with Power Trading Corporation Ltd.

Additionally, LAPL has a long-term fuel supply agreement with South Eastern Coalfields Ltd (SECL), a subsidiary of Coal India Limited. This agreement secures 2.784 million metric tonnes (MMT) of coal annually for the power plant's operations.

Expansion Plans

LAPL is also working on expanding its capacity by setting up a 2x660 MW (1,320 MW) thermal power plant under Phase II. This expansion aligns with Adani Power's objective of increasing its power generation capabilities.

The successful acquisition and implementation of the resolution plan will enhance Adani Power's position as India's leading private sector power producer. With this acquisition, Adani Power's combined operational power generation capacity will reach 15,850 MW.

The primary objective of LAPL, which is power generation, aligns with Adani Power's core business activities. This strategic acquisition is expected to strengthen Adani Power's market presence and operational capabilities in the Indian power sector.