Essar Power’s Mahan power station supplies power through the Mahan-Sipat cable and is additionally connected with a railway siding 18 km far away from the plant for the availability of coal and other raw materials. consistent with industry sources, Adani Power will distribute on the brink of Rs 3,000 crore for the Mahan Project.
“This is to tell that the Committee of Creditors of Essar Power MP Ltd, a corporation undergoing insolvency resolution under the Insolvency and Bankruptcy Code, has approved the Resolution Plan submitted by Adani Power Limited,” read the submission by Adani Power.
It added that the closure of the transaction shall be subject to obtaining necessary approval from the NCLT and satisfaction of conditions precedent under the Resolution Plan.
The development comes at a time when power demand is looking up with the revival of economic activities because the COVID-19 cases have started coming down within the past few weeks.
Adani Group has been on a purchasing spree for power generation assets across the country. Last month, Adani Group’s renewable energy arm Adani Green Energy acquired SB Energy’s solar and wind generation portfolio from Softbank and Bharti Group.
SB Energy’s portfolio consisted of solar projects of 4,180 MW, the wind-solar hybrid capacity of 450 MW, and 324 MW of wind generation projects. AGEL has emerged together of the most important renewable energy companies with an asset portfolio of over 24,000 MW at various stages of development.
Adani Power’s thermal project portfolio consists of 12,500 MW of generation capacity spread across Gujarat, Karnataka, Chhattisgarh, Maharashtra, and Rajasthan. it’s also commissioning 1,600 MW of project in Jharkhand. the corporate will consolidate its leadership position within the power sector further with the addition of 1,200 MW of generation assets.
Essar Power’s Mahan project that operates two units of 600 MW is often expanded by another unit to form a 1,800 MW project. Essar Power commissioned 600 MW units each in late 2012 and in mid-2017 respectively.
“In the approaching years, we’ll still tap promising business opportunities, while striving to enhance our operating efficiencies on all parameters and leveraging our deep experience also as complementarity with the Adani Group’s energy portfolio, to cause sustainable and profitable growth,” Adani Power MD Anil Sardana had said while announcing company’s performance for the fiscal year 2020-21.
The company’s performance for FY 2020-21 was suffering from a sharp drop by demand thanks to strict nationwide lockdown imposed to combat COVID-19 last year. However, its consolidated total income for fiscal 2020-21 stood marginally higher at Rs 28,150 crore compared to the revenue of Rs 27,842 crore in 2019-20. Its total comprehensive income after tax was Rs 18 crore for the half-moon of 2020-21, as compared to the loss of Rs 1,299 crore for the corresponding quarter of 2019-20.