Adani Power completes acquisition of GCEL

12 August 2019

Adani Power Limited (APL), the thermal power producer, announced the completion of the acquisition of GMR Chhattisgarh Energy Ltd. (GCEL), which owns and operates a 1,370 MW (2 X 685 MW) Supercritical power plant at Raikheda village, in Raipur District of Chhattisgarh. 52.38% of the equity stake in GCEL was acquired from its Consortium of Lenders, following the approval of APL’s resolution plan to acquire a controlling equity stake and restructure its debt. The balance 47.62% equity stake was acquired from the GMR Group. The acquisition of GCEL has concluded at an Enterprise Valuation of approx. Rs 3,530 crore.

Supercritical power plant

The Raikheda power plant, which utilizes Boiler and Turbine Generator equipment supplied by Doosan Heavy Industries, S. Korea, is situated close to the coal-bearing areas of Chhattisgarh. This locational advantage will allow GCEL to source domestic coal with lower logistics cost, and make it more competitive while bidding for long term Power Purchase Agreements (PPAs). GCEL presently supplies power to Gujarat under a short term, 1000 MW Case 4 PPA with the Gujarat Urja Vikas Nigam Ltd.

The addition of 1,370 MW capacity, along with the recently concluded acquisition of the 600 MW Korba West Power Co. Ltd., solidifies APL’s position as India’s largest private-sector thermal power producer, with aggregate operating capacities of 12,450 MW and gives it a strong presence in India’s leading power generating as well as power-consuming regions.

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