Adani Power (APL) has inked a definitive agreement to acquire 49 percent stake in the Odisha Power Generation Corporation (OPGC) from affiliates of The AES Corporation (AES), the US-based global energy company.
OPGC operates 1,740 MW thermal power plant at Banharpalli in Jharsuguda district, Odisha. The plant is the mainstay of the Odisha state for base load power supply and amongst the lowest cost power generated in the state. The supercritical capacity of 1,320 MW is a recently commissioned modern plant with low carbon footprint.
The cost of the acquisition at which the shares are acquired is USD 135 million.
OPGC is engaged in the business of establishing, operating and maintaining thermal power generating stations in the state.
The plant has a long-term power purchase agreement (PPA) valid for 25 years with the state-owned off-taker GRIDCO and sources fuel from a nearby captive mine. The state government holds the balance 51 percent stake in OPGC.
AES and Adani Group will continue to partner to facilitate the delivery of renewables and energy storage in India.
The transaction is subject to customary regulatory approvals including compliance with applicable requirements in relation to the government of Odisha and the receipt of regulatory approvals such as the Competition Commission of India and the Reserve Bank of India.
The indicative time period for completion of the acquisition is six months from the date of signing of the share sale and purchase agreement.
The turnover of OPGC for FY19 was Rs 887.71 crore as per audited financials of the company.