2024-08-21 02:27:27
New Delhi: Gautam Adani is going to take another step in the power sector. According to a news, Adani Group’s company Adani Power Limited is planning to acquire Butibori Thermal Power Plant located in Nagpur. The power generation capacity of this plant is 600 MW. According to the news published in Mint, this deal can be between Rs 2400 to 3000 crores. After the completion of this deal, Gautam Adani will further strengthen his hold in the power sector. Let us tell you that Butibori Thermal Power Plant is a part of Vidarbha Power Industries. Vidarbha Power Industries is a subsidiary company of Reliance Power. After this news, Reliance Power shares hit an upper circuit of 5 percent on Monday.
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Power generation is currently shut down
The report quoted an official as saying that Adani Power is in talks with CFM Asset Reconstruction Company (CFM ARC) to acquire the project under Vidarbha Industries Power Limited. CFM ARC has acquired all its loans for Rs 1265 crore. Currently, this company is the sole lender for the project.
The official said that initially the value of this project was around 6 thousand crores. However, later the production from this plant stopped. In such a situation, the valuation of this plant should be less. According to the official, this plant is in line with Adani’s strategy. There has been no official response from Adani Group and CFM ARC regarding this deal.
JSW had shown interest
According to the report, Sajjan Jindal-led JSW Energy Limited had initially shown interest in the project. However, later it backed out due to valuation and operational issues. Let us tell you that since 2019, financial troubles have arisen for the Butibori project. Those who had given loan for it have applied for bankruptcy proceedings against Vidarbha Industries. However, the company has not yet gone bankrupt.
Reliance Power shares showed strength
After the news of this acquisition came out, the shares of Reliance Power saw a rise on Monday. On Monday, it hit an upper circuit of 5 percent. At present, the share price is Rs 32.79. Let us tell you that Anil Ambani has repaid all the debt of his company. This company has become debt free. Since then, its shares are seeing a rise. In the last one month, the shares of this company have given 21 percent return to the investors.