Adani Group buys Lanco’s Udupi thermal plant for Rs 6,000cr
The is the second biggest deal in the power sector after Reliance Power
By : DC Correspondent
Update: 2014-08-14 03:51 GMT
New Delhi:In another major deal in power sector within a span of over 15 days, Adani group acquired Lanco’s 1,200 mega watt Udupi power plant for Rs 6,000 crore ($1 billion). The deal will enable Lanco to receive about Rs 2,000 crore as cash and additionally, Adani Power will take Udupi Power’s long-time debt of around Rs 4,000 crore.
This is the second biggest deal in the power sector after Reliance Power acquired hydro power plants of Jaypee Group worth over Rs 10,000 crore on 27 July. Adani was also a front runner for acquiring Jaypee’s hydro power plants but was beaten by the Anil Ambani’s Reliance Power at the last moment.
For Lanco Infratech, this transaction will support the company in reducing its debt. The Lanco Udupi Power Plant has already signed an agreement with Karnataka government for further expansion of 1,320 mega watt.
The imported coal based thermal power plant of Lanco in Udupi, supplies 90 per cent of the power generated to Karnataka state and 10 per cent to Punjab state. It is the first independent power project in the country based on 100 per cent import coal with a captive jetty of 4 million tons per annum and an external coal handling system in the new Mangalore Port Trust (MPT). The capacity of the power project can be, if required, expanded to handle another 4 million ton.