Bhubaneswar: Adani Power Limited (APL) has signed a definitive agreement to acquire 49% stake in Odisha Power Generation Corporation (OPGC) from the affiliates of The AES Corporation (AES), the US-based global energy company.
Government of Odisha holds the balance 51% stake in OPGC.
“This is to inform you that Adani Power Limited (the “Company”) has entered into a Share Sale and Purchase Agreement (“SSPA”) to acquire from AES OPGC Holding and AES India Private Limited (collectively referred to as “Sellers”) a total of 89,30,237 equity shares held in Odisha Power Generation Corporation Limited (“OPGC”) representing 49% of the total issued, paid-up and subscribed equity share capital of OPGC,” informed Adani Power to Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
OPGC operates 1,740 MW thermal power plant at Banharpalli in Jharsuguda district, Odisha.
This plant is the mainstay of the Odisha state for base load power supply and amongst the lowest cost power generated in the state.
The supercritical capacity of 1,320 MW is a recently commissioned modern plant with low carbon footprint.
The plant has a long-term power purchase agreement (PPA) valid for 25 years with the state-owned off-taker GRIDCO and sources fuel from a nearby captive mine.
The acquisition also marks APL’s foray into Odisha state, and it demonstrates the Adani Group’s long-term commitment to develop and operate high quality infrastructure in the state.
The Transaction is subject to customary regulatory approvals including compliance with applicable requirements in relation to the Government of Odisha and the receipt of regulatory approvals such as Competition Commission of India and Reserve Bank of India.