Adani Power says resolution plan for GMR Chhattisgarh approved

A consortium of lenders led by Axis Bank has issued a letter of intent approving Adani Power's resolution plan to acquire controlling equity stake and restructure debt in GMR Chhattisgarh Energy Limited (GCEL).

The resolution plan was submitted by Adani Power in response to an invitation issued on behalf of the lenders of GCEL, seeking bids for the acquisition of controlling equity stake and restructuring of debt of GCEL.

Post the transaction, Adani Power will hold 100 per cent equity stake in GCEL. Of this, 52.38 per cent stake will be acquired from the lenders, and the balance 47.62 per cent from the GMR Group, the company said in a statement.

GCEL owns an operational 1,370-megawatt supercritical thermal power plant at Raikheda in Raipur district of Chhattisgarh. The plant consists of two units of 685 MW each, commissioned in June 2015 and April 2016.

After the approval of the resolution plan by the committee of creditors of Korba West Power Company Limited (KWPCL) on April 8, Adani Power had announced the receipt of the letter of intent for KWPCL, which owns a 600 MW thermal power plant at Raipur.

The acquisition of GCEL and KWPCL will consolidate Adani Power's position as India's leading private sector thermal power producer with a combined capacity of 12,410 MW.

The company said the developments reaffirm its credentials in development and operation of greenfield projects and successfully turning around brownfield acquisitions.