Nagpur: In a major development, Adani Power on Monday received approval from the Committee of Creditors for acquiring the 600 MW Vidarbha Industries Power Ltd (VIPL) plant at MIDC Industrial Area, Butibori, Nagpur.
Vidarbha Industries Power Ltd, a subsidiary of Reliance Power, is undergoing insolvency proceedings. VIPL owns and operates a 2×300 MW (600 MW) thermal power plant at Butibori, Nagpur, a regulatory filing stated.
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Media reports said that the power generated by the plant would be supplied to Adani’s power distribution area in Mumbai. The company in a statement on Monday mentioned that it has bagged a letter of intent from resolution professional to purchase VIPL, which is currently undergoing insolvency procedures under the Insolvency and Bankruptcy Code (IBC) 2016, has an operational capacity of 600 MW thermal power.
“Committee of creditors (COC) of Vidarbha Industries Power, a company undergoing a corporate insolvency resolution process…has approved the resolution plan submitted by Adani Power. APL has received a letter of Intent (LOI) from the Resolution Professional (RP),” said the company in an exchange filing on NSE.
Adani Power was in talks to buy Reliance Power’s Butibori project, and the value of the deal was then estimated to be between Rs 22,400 crore and Rs 23,000 crore. In September 2024, Reliance Power had discharged its payment obligation in its capacity as guarantor of VIPL by paying a total amount of Rs 3,872.04 crore.
The Reliance Power’s plant belonging to Anil Dhirubhai Ambani Group was planned as a captive power plant but later started sup- plying electricity to Reliance’s power distribution area in Mumbai. However, when Adani took over this business it stopped buying power from the Butibori plant. This led to the plant’s closure in 2019 and about 500 employees lost job.
Adani Power has now sought approval from the National Company Law Tribunal, Mumbai and other regulatory authorities for implementation of its resolution plan subject to the terms of the letter of intent (LOI) it received from resolution professionals. It has made a regulatory filing with the NSE in this regard marking thereby some progress over the buyout. Financials of the deal were not given in the regulatory filing.
