Adani, Ambani set to clash over distressed assets of Lanco Amarkantak Power

The direct clash between the two major industrialist groups is set to happen during an auction on November 25

A clash is brewing between the Mukesh Ambani-led Reliance Industries and Adani Power, owned by fellow billionaire Gautam Adani, to buy the assets of Lanco Amarkantak Power, according to a report in The Economic Times.

The direct clash between the two major industrialist groups is set to happen during an auction of the assets of the distressed thermal power firm undergoing corporate insolvency. The auction is scheduled to take place on November 25.

Citing three people aware of the development, the report said a consortium of Power Finance Corp and REC Ltd, both state-owned, will also participate in the bidding process.

If RIL wins the bid, it will mark the company’s entry into the thermal power sector, where Adani already has a presence.

RIL has already emerged as the highest bidder in the first round of the resolution process. But Adani Power took the first position in the second round with a bid of Rs 2,950 crore. RIL had submitted a bid of Rs 2,000 crore, the report said.

Now that Adani Power has become the highest bidder after the second round, its Rs 2,950-crore offer will be the base price for the November 25 auction, ET reported.

Lanco runs a coal-based thermal power project on the Korba-Champa state highway in Chhattisgarh. It has commissioned the first phase. The second phase is under construction, and the construction of the third phase has yet to begin.

Adani and Reliance groups are also likely to compete over the assets of Future Retail and SKS Power. Both have submitted expressions of interest for these two companies.