On August 22, 2024, Adani Power Ltd announced that the National Company Law Tribunal (NCLT) Hyderabad Bench approved its ₹4,101 crore resolution plan to acquire Lanco Amarkantak Power Ltd (LAPL).

The NCLT issued the order on August 21, 2024, and it became available on the NCLT’s website the next day.

The acquisition is part of LAPL’s ongoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC).

“…this is to inform that National Company Law Tribunal, Bench at Hyderabad (NCLT), has placed on its website on August 22, 2024, its order dated August 21, 2024, approving the resolution plan submitted by Adani Power Ltd for acquisition of LAPL, a company undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code,” according to a stock exchange filing.Also Read: Bharat Forge to invest ₹105 crore in Kalyani Powertrain

LAPL, which owns and operates a 600 MW thermal power plant in Chhattisgarh, aligns with Adani Power’s core business of power generation. The majority of the power generated from the Phase-I capacity is supplied to Haryana and Madhya Pradesh DISCOMs under long-term Power Purchase Arrangements through Power Trading Corporation Ltd.

It has 2.784 MMT of long-term Fuel Supply Agreement with Coal India Ltd’s subsidiary South Eastern Coalfields Ltd (SECL). LAPL is also setting up a 2×660 MW (1320 MW) expansion capacity under Phase II.

The successful acquisition will enhance Adani Power’s position as India’s leading private-sector power producer, increasing its operational power generation capacity to 15,850 MW. The acquisition is set to be completed within 60 days of the NCLT’s approval, by October 20, 2024.

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Shares of Adani Power Ltd ended at ₹673.85, down by ₹21.10, or 3.04% on the BSE.