Adani Power to acquire US-based AES' 49% stake in Odisha Power for Rs 1,019cr

Adani Power will purchase a 49 percent equity stake in Odisha Power Generation Corporation (OPGC) for $135 million (around Rs 1,019 crore) from US-based The AES Corporation's, the company said on June 23.

"Adani Power Ltd (APL) has signed a definitive agreement to acquire the 49 percent stake in Odisha Power Generation Corporation (OPGC) from the affiliates of The AES Corporation (AES), the US-based global energy company," a regulatory filing said.

The Odisha government holds the balance 51 percent stake in OPGC.

Adani Power, a subsidiary of Adani Group, will acquire a total of 89,30,237 equity shares held in OPGC representing 49 percent of the total issued, paid-up and subscribed equity share capital.

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The OPGC operates a 1,740 MW thermal power plant at Banharpalli in Jharsuguda district, Odisha. This plant is the mainstay of the Odisha state for base load power supply and amongst the lowest-cost power generated in the state.

The supercritical capacity of 1,320 MW is a recently commissioned modern plant with low carbon footprint.

The plant has a long-term power purchase agreement (PPA) valid for 25 years with the state owned off taker GRIDCO and sources fuel from a nearby captive mine.

The acquisition also marks APL's foray into Odisha state, and it demonstrates the Adani Group's long-term commitment to develop and operate high quality infrastructure in the state, it said.

"AES and Adani Group shall continue to partner to facilitate the delivery of renewables and energy storage in India," APL said in a statement to stock exchanges.

The transaction is subject to customary regulatory approvals from the Government of Odisha, Competition Commission of India and Reserve Bank of India, it added.

The turnover of OPGC during 2018-19 was Rs 887.71 crore.