Adani Power (APL) has entered a binding agreement with Avantha Power and Infrastructure (APIL) for the purchase of 600MW Korba West Power (KWPCL) unit for more than Rs42bn ($680m).
Besides the coal-based thermal power plant in Korba, Chattisgarh, KWPCL owns an expansion phase which is being developed at present.
The acquisition would raise Adani Power’s installed capacity to 11,040MW. Advisor for the transaction was Macquarie Capital.
The deal will bring the Adani Group closer to its goal of owning 20,000MW power capacity by 2020.
APL intends to expand KWPCL’s capacity and leverage its project execution capabilities in an effort to drive energy security in India.
Adani Group chairman Gautam Adani said: "This acquisition consolidates our pan-Indian presence and further re-affirms our belief in the reforms processes under way in the power and coal mining sectors.
"The acquisition of KWPCL expands our footprint in India particularly in the coal mining belt of India and we are bullish of expanding our presence further in the country. We are committed towards contributing towards India’s growth and confident of achieving our target of generating 20,000MW by 2020."
APL is the largest private sector power company in the country and currently has an operational capacity of 9,240MW.
The firm had acquired 1,200MW coal-fired Udupi plant from Lanco Infra in August this year for around Rs60bn ($970.8m).