India Power Corporation Ltd. (IPCL), one of the leading power generation and utility company in the country, has agreed to acquire 89% equity stake held by French firm Engie Global Developments BV in Hyderabad-based Meenakshi Energy and Infrastructure Holdings Pvt. Ltd.
“India Power would fund the purchase with internal reserves. The 74-billion euro Engie Group is exiting thermal power operations worldwide to reduce carbon footprint. We have been looking at expanding our thermal power portfolio and have entered into an agreement with Engie to acquire its entire stake in the company,” said Hemant Kanoria, chairman of IPCL.
IPCL hopes to complete the acquisition process in the next three months. With this acquisition, IPCL is expected to become a 1,600 MW power company by the end of 2017. It currently produces about 100 MW of wind energy and has 42 MW thermal capacity, while a 450 MW facility at Haldia is set to be commissioned by the end of next year.
Meenakshi Energy’s assets comprise a 300 MW thermal power plant in Andhra Pradesh’s Nellore district, and another 700 MW project, which is under construction and is expected to be completed by the end of 2017.