Adani Power Set to Procure GMR Chhattisgarh Energy Ltd

Adani Power has announced that it will procure GMR Chhattisgarh Energy Ltd (GCEL) as the association of lenders has sanctioned its resolution plan.

The association of lenders, led by Axis Bank, to GMR Chhattisgarh Energy Ltd (GCEL), has delivered a Letter of Intent dated June 24, 2019, approving Adani Power's (APL) resolution plan to procure controlling equity stake and restructure debt in GCEL, Adani Power believed.

"Post the transaction, Adani Power Limited shall hold 100 per cent equity stake in GCEL. Of this, 52.38 per cent stake is to be acquired from the lenders, and the balance 47.62 per cent is to be acquired from the GMR Group," it said

GCEL owns an operational 1.370 megawatt (MW) supercritical thermal power plant in Raikheda, Raipur district, Chhattisgarh. The plant involves 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 producer with combined thermal power capacity of 12,410 MW. Further, this reaffirms APL's credentials in development and operation of greenfield projects, and also successfully turning around brown-field acquisitions," it further