Adani Power buys 49% stake in Odisha Power Generation Corp from US firm

Odisha holds the balance 51% in OPGC which operates the 1,740 Mw thermal power plant at Banharpalli in Jharsuguda

Adani Power Limited (APL) today signed an agreement to buy 49 per cent stake in Odisha Power Generation Corporation (OPGC) from US-based AES Corporation (AES),  the US-based global energy company.  

The government of Odisha holds the balance 51 per cent stake in OPGC which operates the 1,740 Mw thermal power plant at Banharpalli in Jharsuguda, Odisha. This plant is the mainstay of the state for base load power supply and amongst the lowest cost power generated in the state, the company said in a statement.

The super-critical 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 company said.

The acquisition also marks Adani Power’s foray into Odisha and it demonstrates its commitment to develop and operate high quality infrastructure in the state, the company said.

“The Adani Group is committed for successful and mutually beneficial long-term partnership with Government of Odisha and the people of this progressive state,” said a Adani group statement.

AES, a Fortune 500 company, and Adani Group will continue to partner to facilitate the delivery of renewables and energy storage in India.  Through this sale, AES' generation in MWh from coal will be reduced to 35 per cent of total generation, from 45 per cent. AES had previously announced a goal to reduce its electricity generation from coal to below 30 per cent by the end of this year and to less than 10 per cent by the end of 2030.  

Since 2014, the Adani Group has announced over 20 acquisitions and strategic partnership totalling Rs 68,000 crore. This includes some of the largest acquisitions in India (in terms of transaction value) such as Reliance Energy's Mumbai electricity distribution for Rs 14,200 crore and 75  per cent stake in Krishnapatnam Port for Rs 13,500 crore.