Adani Power Limited (APL) today signed an agreement to purchase a 49 per cent stake in Odisha Power Generation Corporation (OPGC) from the US-based AES Corporation (AES), the US-based global energy company.
The Government of Odisha holds a 51 % stake in OPGC, which operates a 1,740 MW thermal power plant in Banharpalli, Jharsuguda, Odisha. This plant is the mainstay of the state for the supply of base load power and is among the lowest cost power generated in the state, the company said in a statement.
The super-critical capacity of 1,320 MW is a newly commissioned modern plant with low carbon footprint. The plant has a long-term power purchase agreement (PPA) valid for 25 years with GRIDCO, a state-owned off-taker and a source of fuel from a nearby captive mine, the company said.
The acquisition also marks the departure of Adani Power to Odisha and demonstrates its commitment to develop and operate high quality infrastructure in the state, the company said.
“The Adani Group is committed for a successful and mutually beneficial long-term partnership with the Government of Odisha and the people of this progressive state,” said a Adani group statement.
AES, Fortune 500, and Adani Group will continue to partner to facilitate the delivery of renewables and energy storage in India. This sale will reduce the generation of AES from coal in MWh to 35 percent of the total generation, from 45 per cent. AES had previously announced the goal of reducing its coal-fired electricity generation to below 30 % by the end of this year and to below 10 % by the end of 2030.
Since 2014, Adani Group has announced more than 20 acquisitions and strategic partnerships totalling Rs 68,000. This includes some of India's largest acquisitions (in terms of transaction value) such as Reliance Energy's Mumbai electricity distribution for Rs 14,200 crore and 75 per cent of Krishnapatnam Port for Rs 13,500 crore.
