Adani Group to acquire Avantha’s 1,260 MW plant

After procuring Avantha Group’s 600-MW Korba West plant for more than Rs 4,200 crore last year, Gautam Adani of Adani Group is planning to make another big purchase. Reports suggest that the Adani group is in conversation with the Avantha group and might purchase Avantha Power & Infrastructure's 1,260 MW power project in Madhya Pradesh.

As per a report published in Economic Times, Avantha Power is in talks with a consortium of Tata Power and ICICI Venture to sell its Jhabua Power unit. Sources aware of development informed ET that now the company has sent a proposal to Adani Power for a possible deal.

"Avantha is keen to close the deal soon and given their relation with the Adanis after the sale of the first project, they have now initiated talks to sell the second projects. But it is still early days," informed sources on condition of anonymity.

Experts supposed that the total project cost for executing the Jhabua Power project could be Rs 7,500 crore. Though the value of the deal was not known but a source said Avantha Power could offer a significant discount to Adani Power given its desire to exit the project that's still under implementation.

Image: indiatimes