This is the second big takeover by the Adani group after it took over of Dhamra port in Odisha from L&T and Tata Steel in May this year for Rs 5,500 crore. This is also yet another large transaction in the power sector within weeks of Jaypee group selling off its hydro power assets to Reliance Power for a reported valuation of Rs 12,000 crore to Rs 15,000 crore.
Lanco’s Udupi plant in Karnataka was facing a lot of operational issues with the plant even stopping production in June this year as arrears worth Rs 1800 crore from Karnataka electricity board piled up.
The company was importing coal from Indonesia from the New Mangalore Port and it failed to lift coal to run its power station. Lanco finally put the plant on the block to reduce its debt worth Rs 35,000 crore as on March this year.
In April this year, the Adani group has emerged as the largest private power producer in India with an overall installed capacity of 8,620 MW. The Adani group owned by rags-to-billionaire Gautam Adani is planning to concentrate on the Indian infrastructure sector and has put its loss-making coal terminal in Australia for sale at a reported valuation of $ 2 billion.