Adani Power said on Thursday that the NCLT Hyderabad bench has authorized its bid to acquire Lanco Amarkantak Power Ltd (LAPL) for an upfront payment of Rs 4,101 crore. LAPL is now undertaking the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, according to a BSE filing.

According to the filing, the acquisition is subject to the satisfaction of the conditions precedent outlined in the resolution plan.

According to the petition, Adani Power would buy a 100% stake in LAPL for cash consideration.

LAPL owns and runs a 2x300 MW (600 MW) thermal power plant (Phase I) at Pathadi Village, Korba District, Chhattisgarh.

The majority of the electricity generated by the Phase-I capacity is provided to Haryana and Madhya Pradesh Discoms under long-term power purchase agreements with electricity Trading Corporation Ltd.

It has a long-term fuel supply deal worth 2.784 MMT with Coal India Limited's subsidiary South Eastern Coalfields Ltd (SECL). LAPL is also planning a 2x660 MW (1320 MW) expansion capacity for Phase II.

The transaction must be finalized within 60 days of the National Company Law Tribunal's approval decision, by October 20, 2024.

The successful purchase and implementation of the resolution plan for the acquisition of LAPL would strengthen Adani Power's position as India's top private sector power producer, with a combined operational power generation capacity of 15,850 MW, the company added.