Vedanta To Acquire Athena Chhattisgarh Power For Rs 564 Crore To Fulfil Energy Requirements Of Its Aluminium Business

by Swarajya Staff - Jul 8, 2022 03:06 PM +05:30 IST
Vedanta To Acquire Athena Chhattisgarh Power For Rs 564 Crore To Fulfil Energy Requirements Of Its Aluminium BusinessVedanta

Vedanta Limited on Thursday (7 July) said that it will acquire 100 per cent stake in debt-ridden Athena Chhattisgarh Power Limited for Rs 564 crore.

The acquisition at a purchase price of Rs 564.67 crore is expected to be completed in current financial year, and the consideration is in the form of cash.

"Vedanta Limited to acquire 100% of the paid-up capital of Athena Chhattisgarh Power Limited," the company said in a regulatory filing.

The acquisition will fulfill the power requirement at for Vedanta Aluminium Business and via vertical integration add synergies by providing a cost advantage pertaining to power consumption, it added.

Athena is a 1,200 MW power plant located at Jhanjgir Champa district, Chhattisgarh, India at a distance of nearly 80 km from BALCO and 180 km from Jharsuguda.

Athena was admitted under Corporate Insolvency Resolution Process (“CIRP”) on 15th May 2019 and on 13th May 2021, NCLT Hyderabad bench directed initiation of the Liquidation process of the Company.

The plant has two units of 600 MW each. Unit 1 and Unit 2 are nearly 80 per cent and 30 per cent complete respectively and therefore, the company has never been operational.

The Plant is well connected to national highways and railway stations and is also located in close proximity to its water source, Mahanadi River and fuel source.

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