Udupi, Aug 13: Gujarat based business conglomerate Adani Group has now stretched its arms towards coastal Karnataka by purchasing Udupi Power plant from Lanco Infratech Ltd.

As per the deal, Lanco will get around Rs 2,000 crore while the remaining Rs 4,000 crore debt would pass on to Adani Power.
Adani Power, which recently lost the race to buy two large hydro power assets of Jaypee Group for around $2 billion to Reliance Power, now gets to sew one of the biggest M&A deals in the domestic thermal power space.
This is the second big takeover by the Adani group after it took over of Dhamra port in Odisha from L&T and Tata Steel in May this year for Rs 5,500 crore.
Lanco's Udupi plant in Karnataka was facing a lot of operational issues with the plant even stopping production in June this year as arrears worth Rs 1800 crore from Karnataka electricity board piled up.
The company was importing coal from Indonesia from the New Mangalore Port and it failed to lift coal to run its power station. Lanco finally put the plant on the block to reduce its debt worth Rs 35,000 crore as on March this year.
In April this year, the Adani group has emerged as the largest private power producer in India with an overall installed capacity of 8,620 MW. The Adani group owned by rags-to-billionaire Gautam Adani is planning to concentrate on the Indian infrastructure sector and has put its loss-making coal terminal in Australia for sale at a reported valuation of $2 billion.


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