The acquisition marks Adani Power’s foray into Odisha. (Representative image)

Adani Power on Tuesday said it had signed definitive agreements with US-based AES Corporation to acquire the latter’s 49% stake in the 1,740-MW Banharpalli thermal power plant in Odisha. The remaining 51% of the plant is owned by the Odisha government. The financial details of the deal were not disclosed.

The plant had recently increased its capacity by 1,320 MW through a Rs 11,000-crore expansion project. It has a long-term power purchase agreement (PPA) valid for 25 years with the host state, and sources fuel from a nearby captive mine. The acquisition marks Adani Power’s foray into Odisha.

AES and Adani Group are already partner in renewables and energy storage business in the country. “The transaction is subjected to customary regulatory approvals, including compliance with applicable requirements in relation to the government of Odisha and the receipt of regulatory approvals such as Competition Commission of India and Reserve Bank of India,” the company said.

Recently, Adani Power signed a 25-year PPA with Madhya Pradesh, which marked the first such power contract in five years. According to sources, Adani Power quoted the lowest bid of Rs 4.79/unit (Rs 2.90/unit as fixed charge and Rs 1.89/unit variable charge), outbidding JSW Energy and MB Power. According to the contract, the company will build a 1,320-MW power station in Pench.