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Adani Power Receives LoI To Acquire Korba West Power Company Under Insolvency And Bankruptcy Code
Power grid in India (Indranil Bhoumik/Mint via Getty Images)
Adani group, the Thermal Power Behemoth with a capacity of 10,500 MW has received a Letter of Intent for acquiring the Korba West Power Co. This secures Adani group’s intention to acquire the debt redden Korba Power under the Insolvency and Bankruptcy Code, 2016, reports New Indian Express.
The group has been in talks to acquire the Korba West Power Co since 2014 and has paid more than $330 million as a part-time payment ever since. The Korba West Power Co is a 600 MW coal-fired power plant which was added to a list of 34 stressed power plants in 2018 by an Indian parliamentary panel report, due to the size of its debt.
The parliamentary panel has listed a total of 34 stressed coal-based power plants that are unable to function due to their debt with a total power generation of 40,130 MW, the total outstanding debt of these projects is pegged at Rs 1.74 lakh crore.
Acquiring the Korba plant will enhance the power generation capacity of the Adani group as the group recently secured the rights to develop and operate two coal in Korba district. This brings the combined thermal power capacity of the Adani group to 11,040 MW.
The project will be subject to approvals from the National Company Law Tribunal, Ahmedabad before closure of the transaction.
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