Editor’s Synopsis

  • Adani Power acquires Lanco Infratech’s Udupi power plant
  • Deal valued at more than Rs.6000 crore
  • Adani Power’s installed capacity to rise to 10,440 MW
  • Adani Power is India’s largest private sector power generation company

Ahmedabad, August 14, 2014: Adani Power Limited, a subsidiary of Adani Enterprises Ltd and a part of Adani Group, today said it had executed a definitive agreement for acquisition of 100% shares of the Udupi Power Corporation Limited from Lanco Infratech Limited.

Adani power is India’s largest private sector power generation company with a current operational capacity of 8,580 MW, comprising of 4,620 MW at Mundra in Gujarat, 2,640 MW at Tiroda in Maharashtra and 1,320 MW at Kawai in Rajasthan. With one more unit of 660 MW commissioning at Tiroda shortly and the acquisition of 1200 MW Udupi power plant, the installed base of APL will increase to 10,440 MW, getting Adani Power closer to its goal of achieving 20,000 MW of capacity by 2020.

“Now is the time for consolidation in the Indian power sector. As a leading private power producer, Adani Power, has taken the lead and acquired the Udupi thermal project. This marks our entry into southern India and we are bullish of expanding our presence further in the country. We are committed towards contributing towards India’s growth and confident of achieving our target of generating 20,000 MW by 2020,” said Gautam Adani, Chairman Adani Group.

The deal is valued at more than Rs 6000 crore. The Udupi Power Plant is an operational power project based on 100% imported coal with a captive jetty of 4 million tons per annum. The project supplies 90% of the power generated to State of Karnataka and 10% to State of Punjab. An agreement for expansion of 1320 MW capacity has already been executed with the Government of Karnataka.

The acquisition of Udupi thermal power station located in the state of Karnataka is a strategic fit to the integrated infrastructure business model of the Adani Group and establishes Adani Power’s presence in Southern India. Adani Power will endeavor to expand the capacity of Udupi expeditiously, leveraging its project execution capabilities. Adani Power is also committed to seize further opportunities for capacity addition and provide much needed energy security of southern India.   

Macquarie Capital was the lead advisor to the transaction alongwith SBI Caps.