On June 23, 2020 Adani Power Ltd (APL) has signed an agreement to acquire the 49% of stake(a total of 89,30,237 equity shares) in Odisha Power Generation Corporation(OPGC) from the affiliates of the US-based global energy company, AES Corporation(AES) for USD 135 million (around Rs 1,019 crore).
- The remaining 51% stake in OPGC is held by the Government of Odisha.
- The 49% stake includes the total issued, paid-up and subscribed equity share capital.
About the acquisition
The transaction is subject to customary regulatory approvals, including compliance with applicable requirements related to the Government of Odisha & bills from the regulatory approvals like Competition Commission of India(CCI) and Reserve Bank of India(RBI).
OPGC’s plant
- OPGC operates a 1,740 Megawatt(MW)thermal power plant at Banharpalli in Jharsuguda district, Odisha, which is one of the lowest-cost power generated in the state.
- A 1,320 MW modern plant with a low carbon footprint is commissioned. The plant has a long-term Power Purchase Agreement(PPA), with a validity of 25 years with Ghana Grid Company Limited (GRIDCo) and sources the fuel from the nearby captive mine.
Adani Group’s acquisitions
i.The Adani Group has announced over 20 acquisitions and strategic partnership, with a total of Rs 68,000 crore since 2014.
ii.This includes Reliance Energy’s Mumbai electricity distribution for Rs 14,200 crore and 75% stake in Krishnapatnam Port for Rs 13,500 crore.
About OPGC:
Headquarters- Bhubaneswar, Odisha
Chairman– Nikunja Bihari Dhal, IAS
Managing Director– Indranil Dutta
About APL:
Headquarters– Ahmedabad, Gujarat
Chief Executive Officer(CEO)– Vneet S. Jaain
About AES:
Headquarters– Virginia, United States
President & CEO– Andrés Gluski
