Vedanta said in a January 18 exchange filing that it would acquire debt-laden Meenakshi Energy for Rs 1,440 crore after becoming the winning bidder.

Vedanta will make an upfront payment of Rs 312 crore, while the balance of Rs 1,128 crore will be paid in the form of secured, unlisted non-convertible debentures (NCDs) issued by Meenakshi Energy. The company said the consideration would be due in five instalments over five years.

Meenakshi Energy owns a 1,000 MW coal-fired power plant in Nellore, Andhra Pradesh. It was recognised under the bankruptcy resolution, and proceedings began on November 7, 2019. Meenakshi Energy was established in 1996 in two phases. The first phase has been completed, and the second phase is pending. Its commercial operation date has yet to be announced.

According to a filing to the exchange, Vedanta currently envisages operating 1,000 MW of Meenakshi Energy as an independent power producer (IPP) to meet market demand by entering short- or medium-term power purchase agreements (PPAs) and supplying electricity to merchants. The company said the acquisition would strengthen the group’s power mix.

The company added that approval from the National Company Law Tribunal (NCLT) is pending. Meenakshi Energy’s revenue stood at Rs 201 crore and Rs 95 crore in FY22 and FY21, respectively. In October 2022, government-driven bad bank National Asset Restructuring Corporation (NARCL) reportedly made a binding offer of Rs 900 crore to Meenakshi Energy’s lenders to acquire its debt.