Adani Power announced that the Hyderabad bench of the National Company Law Tribunal (NCLT) has approved its plan to acquire Lanco Amarkantak Power Ltd (LAPL) for an upfront payment of Rs 41.01 billion. LAPL is currently undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code.
Under the approved plan, Adani Power will acquire 100% shareholding in LAPL for cash. LAPL operates a 2×300 MW (600 MW) thermal power plant in Korba, Chhattisgarh, with power supplied primarily to Haryana and Madhya Pradesh through long-term power purchase agreements. LAPL also has a 2.784 MMT long-term fuel supply agreement with South Eastern Coalfields Ltd, a subsidiary of Coal India Limited. Additionally, LAPL is developing a 2×660 MW (1320 MW) expansion project under Phase II.
The acquisition is set to be completed within 60 days of the NCLT’s approval order, by October 20, 2024.