Adani Power Limited, one of the largest private-sector thermal power producers, has recently made a statement that it has completed the acquisition of GMR Chhattisgarh Energy Limited. GCEL owns and operates 1,370 MW supercritical power plants at Raikheda village in the Raipur district of Chhattisgarh. The power plant has two different units of 2 × 685 MW. A consortium of lenders achieved 52.38% of the equity stake in GCEL. After that, approval was required for APL’s resolution plan to get a controlling equity stake and restructure its debt. The balance of 47.62% equity stake was acquired from the GMR Group.
What Makes the Acquisition of GMR Chhattisgarh Energy Ltd. a Valuable Venture for the Adani Group?
The acquisition of GCEL was brought to an end at an enterprise evaluation of INR 3,530 crore. The power plant operating under GCEL makes use of boiler and turbine-generated equipment. This is supplied by Doosan Heavy Industries in South Korea and is situated close to the coal-rich areas of Chhattisgarh. The location advantage has allowed GCEL to obtain domestic coal at a lower logistics cost. This also makes it more competitive while bidding for long-term purchase power agreements. The Adani Chhattisgarh project currently supplies power to Gujarat for the short term. A power capacity of 1,000 MW will be supplied for 4 PPA with the Gujarat Urja Vikas Nigam Limited.
An additional 1,370 MW capacity, along with the recent acquisition of 600 MW Korba West Power Co Limited, will strengthen APL’s position as India’s largest private sector thermal power producer. It has a total operational capacity of 12,450 MW. This creates a powerful power presence in India and also illuminates different regions of India with its extraordinary power supply. With these recent developments, APL has become one of the leaders in India’s electricity sector. This has offered our country robust growth and increased our market size in the power segment.
Adani Power’s Future Plans
The acquisition of GCEL is just one out of the many acquisitions of the Adani Group. The conglomerate has various other projects to be executed in the upcoming years. With the completion of the project, it will take up the place of being the most significant private power producer in the entire world. Its stakes will rise considerably. It will also be able to lead the planet towards growth and prosperity. Adani Chhattisgarh has maintained complete transparency in the execution of every single project. It has also tried to minimise the environmental impact by using advanced technology.
The excellent position of APL will be further consolidated after the completion of the 1,600 MW ultra-supercritical power project, which is currently in the construction phase at the Godda District of Jharkhand. This is one of the significant transnational projects and will supply sufficient power to Bangladesh. The aggregate generation capacity will be around 14,050 MW. SBI Capital Markets Limited has been the M&A advisor for this transaction. It has also had a considerable role to play in completing the deal. Cyril Amarchand Mangaldas was the legal advisor of the projects, and Luthra & Luthra Law offices played the lender’s legal counsel role.
A Brief Overview of Adani Power
Adani Power is a part of the diversified business foundation, the Adani Group. The company has a total installed thermal capacity of 12,450 MW. The power capacity is distributed across four major power plants in Rajasthan, Gujarat, Maharashtra, and Karnataka. The projects have been developed with the help of a team of world-class experts who have yielded experience in power supply and development. Adani Power is also continuously achieving growth potential with every passing year. The company has harnessed advanced technology and innovation to change the planet’s face completely. It has also made India a power-surplus nation so that affordable electricity can be provided to all.
Conclusion:
The philosophy of the Adani Group to increase power supply in different corners of India strongly aligns with the Government’s goal to achieve Power for All. APL has a mix of various open capacities and capacities tied up in long-term PPA. This will provide long-term visibility while allowing the conglomerate to look for better growth opportunities. The Adani Group has also been constantly leveraging its potential in the infrastructure sector to develop large power plants in different corners of the country, including the Adani Chhattisgarh project. This has again offered the conglomerate with extraordinary growth.
