Adani Power secures letter of intent to acquire Korba West Power Company

Adani Power Monday said it has been awarded a letter of intent to acquire debt-laden Korba West Power Company.

"The company has been awarded the letter of intent (LOI) for Korba West Power Company Ltd (KWPCL). The Committee of Creditors of KWPCL, a company undergoing insolvency resolution process under the Insolvency and Bankruptcy Code, 2016, has approved the resolution plan submitted by Adani Power," Adani Power said in a BSE filing.

The closure of the transaction shall be subject to obtaining the necessary approval from the NCLT, Ahmedabad, and satisfaction of the conditions precedent under the resolution plan, the company added.

KWPCL owns and operates a 600 mega watt (MW) thermal power plant in Raigarh district in Chhattisgarh.

Adani Power said the successful acquisition and implementation of the resolution plan for acquisition of KWPCL will consolidate its position as India's leading private sector thermal power producer, with a combined thermal power capacity of 11,040 MW.

"Further, this reaffirms Adani Power's credential in development and operation of greenfield projects, and also successfully turning around brownfield acquisitions," the company said.

Shares of Adani Power were trading 0.80 per cent higher at Rs 50.15 apiece on BSE.