Thermal power producer Adani Power said it has signed a business transfer agreement for Dahanu Power for a cash consideration of Rs 815 crore.
In a late Monday evening statement to BSE, Adani Power said it has signed the agreement with North Maharashtra Power (NMPL), a related party company, to acquire the 500 megawatt (MW) Adani Dahanu Thermal Power Station (ADTPS) located at Dahanu.
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The power producer said the total investment for the acquisition is Rs 815 crore, to be funded through internal accruals. Further, the company will spend another approximately Rs 450 crore over the next five years towards life extension capital expenditure for the power plant.
ADTPS supplies power under a long-term power purchase agreement to the Mumbai power distribution circle of Adani Electricity Mumbai Limited. Until recently, the asset was housed with Adani Energy Solutions. On September 28, Adani Energy said North Maharashtra Power has ceased to be its subsidiary, as it has allotted further equity shares to Adani Properties Private Limited (APPL), equivalent to NMPL’s 99.90 per cent post-issue paid-up capital.
Adani Power, in its statement, said, “The acquisition of ADTPS will enable consolidation of thermal power generation capacities of Adani portfolio companies under one umbrella to maximise synergistic benefits and leverage the company’s experience and capabilities for improved operational efficiency and reliability of the power plant.”
In its annual report for FY24, Adani Energy noted plans to carve out the Dahanu asset in the current financial year. The 500 MW generation unit is a legacy asset, which was part of the Mumbai power distribution business that Adani Energy acquired from Anil Ambani’s Reliance Infrastructure in 2018.
First Published: Oct 01 2024 | 5:12 PM IST
