The slew of acquisitions by the Gautam Adani-led Adani Group comes at a time when India’s power demand has been witnessing an uptick
As per the recent government data, India’s power consumption grew by around 12.6 per cent in the first week of June, to 25.36 billion units. With the commercial and industrial electricity demand gradually recovering, power companies have already embarked on an acquisition spree. The Gautam Adani-led Group’s power business is among those enterprises.
Adani Power Limited (APL), India’s largest power producer in the private sector, is all set to acquire the 1,200 megawatt (MW) Essar Power’s Mahan Project. It has received an LoI (Letter of Intent) from the National Company Law Tribunal on June 17. The project by Essar is located in Madhya Pradesh, where Adani Group’s first coal mine in India is already located.
The power subsidiary of the Gautam Adani Group is said to be acquiring the Mahan Project at almost Rs 3,000 crore. “This is to inform that the Committee of Creditors of Essar Power M P Ltd, a company undergoing insolvency resolution under the Insolvency and Bankruptcy Code, has approved the Resolution Plan submitted by Adani Power Limited,” read a statement by Adani Power.
With power demand in the country seeing an uptick, the Adani Group has been acquiring one power business after the next. In May, Adani Green Energy purchased SB Energy’s solar and wind power portfolio from Softbank and Bharti Group. Soon after the acquisition, Gautam Adani said that this move is another step towards the group’s vision of becoming the world’s largest solar player by 2025. It also aims to own 25 GW of renewable energy capacity by the same year.
In addition to this, GE Power’s acquisition of 50 per cent equity stake in NTPC GE Power Services Pvt Ltd (NGSL), also comes at a time when the country’s power demand is looking up. However, unlike the slew of acquisitions led by the Gautam Adani-founded Group, the two companies are affiliates of GE Group. GE Power aims to renovate and modernise the thermal power plants once the acquisition is completed.
What is to be noted is the fact that, as the rest of the world moves towards cleaner energy, India too should ramp up on the same. In this light, Gautam Adani tweeted on World Environment Day, “Clean, green, affordable energy is what our world, our nation and our next generation need. We will accelerate investments in renewable and sustainable energy and create thousands of jobs.”