Adani Power has declared that it will acquire GMR Chhattisgarh Energy Ltd (GCEL) after the consortium of lenders has approved its resolution plan for the same.
The consortium of lenders, to GMR Chhattisgarh Energy Ltd (GCEL),led by Axis Bank, has issued a Letter of Intent dated June 24, 2019, in which it has approved Adani Power’s (APL) resolution plan to acquire controlling equity stake and allowed to restructure debt in GCEL, Adani Power expressed in a regulatory filing.
“Post the transaction, Adani Power Limited shall hold a 100 percent equity stake in GCEL. Of this, 52.38 percent stake is to be acquired from the lenders and the balance of 47.62 percent is to be acquired from the GMR Group,” it said.
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GCEL has a fully operational 1.370 megawatt (MW) supercritical thermal power plant in Raikheda in Raipur district of Chhattisgarh. The plant consists of 2 units of 685 MW each, commissioned in June 2015 and April 2016 respectively.
“Successful acquisition of GCEL and Korba West Power Company (KWPCL) will consolidate APL’s position as India’s leading private sector thermal power a producer with a combined thermal power capacity of 12,410 MW. Further, this reaffirms APL’s credentials in the development and operation of greenfield projects, and also successfully turning around brown-field acquisitions,” it added.