The Adani Group is gearing up for a significant deal in the power sector, casting its eyes on the power plants owned by Anil Ambani. According to a report in Mint, Adani Power is in negotiations to acquire the 600 MW Butibori Thermal Power Project located in Nagpur, with an estimated investment ranging between ₹2,000 to ₹3,000 crores. The valuation for this deal could potentially be around ₹4-5 crores per MW. This power plant, which was previously owned by the bankrupt Reliance Power, is now under the subsidiary, Vidarbha Industries Power.
What Does the Report Indicate?
As per the report, the Adani-led group is in discussions with the CFMS Asset Reconstruction Company, the sole lender for the power project. This project comprises two plants and might be valued at approximately ₹6,000 crores. However, the closure of one of the plants has affected its valuation, according to Business Daily. In an earlier development in April, the firm led by Anil Ambani completed the sale of its wind energy project in Washpet, Maharashtra, to JSW Renewable Energy.
Information from Reliance Power
In a regulatory filing on April 12, Reliance Power announced the completion of the slump sale of its 45 MW wind energy project in Washpet to JSW Renewable Energy (Coated) Limited, receiving an amount of ₹132.39 crores in return. Prior to this, in March, two subsidiaries of the firm settled ₹1,023 crores in loans with Reliance Commercial Finance, a branch of Authum Investment.
Implications of the Deal
If the Adani Group successfully completes this acquisition, it will become a major player in the power sector. The group has already initiated a plant dedicated to supplying electricity to Bangladesh and operates several plants within the power sector. This deal could significantly enhance the revenue of Adani Group’s power vertical.
Key Highlights of the Proposed Deal
| Aspect | Details |
|---|---|
| Project Location | Nagpur, Maharashtra |
| Installed Capacity | 600 MW |
| Estimated Cost | ₹2,000 – ₹3,000 crores |
| Valuation per MW | ₹4 – ₹5 crores |
| Previous Owner | Reliance Power |
| Current Owner | Vidarbha Industries Power, a subsidiary of Reliance Power |
| Potential Lender | CFMS Asset Reconstruction Company |
Conclusion
The potential acquisition of Anil Ambani’s power plants signifies a strategic move for the Adani Group as it seeks to solidify its position in the energy sector. As the conversation around renewable and sustainable energy intensifies, this deal might not only affect the financial landscape but also the competitive dynamics within the industry.
