Adani Power has received the letter of intent for the resolution of the bankrupt Essar Power MP Ltd (EPMPL).
The development comes after the Committee of Creditors (CoC) of EPMPL approved Adani’s resolution plan to acquire the company under the Insolvency and Bankruptcy Code (IBC), Adani Power said in a regulatory filing.
Essar Power MP, Mahan is a 1,200-MW (2×600 MW) domestic coal-fired power plant located in Singrauli district, Madhya Pradesh.
“Pursuant to this approval, the Resolution Professional appointed by the National Company Law Tribunal, Delhi (NCLT) has issued a Letter of Intent dated 17th June 2021 to the company,” it said.
According to sources, Adani Power is expected to pay Rs 2,900 crore for the Mahan project.
The plant supplies power through the Mahan-Sipat transmission line and operates two units of 600 MW with capacity to expand to one more unit to take the total power generation to 1800 MW. The two units of 600 MW each were commissioned in 2012 and 2017, respectively.
Adani Power has a total of 12,500 MW thermal power generation capacity spread across Gujarat, Karnataka, Chhattisgarh, Maharashtra and Rajasthan.