Adani Power will acquire Lanco Infratech's 1,200 MW Udupi thermal plant in a deal worth over Rs 6,000 crore.
The big-ticket deal comes less than three weeks after Reliance Power agreed to acquire three hydel projects of Jaypee Group. Adani Power , which is part of the diversified Adani Group, was also in the race for those hydro plants.
Adani Power would acquire Lanco Infratech's 1,200 MW imported coal-fired Udupi thermal power plant in Karnataka.
Making the announcement, Lanco Infratech said the deal is "is valued at more than Rs 6,000 crore". It includes Rs 4,000 crore debt component.
"This transaction will support the company in reducing its debt and will enable Lanco to receive about Rs 2,000 crore as cash and additionally, Adani Power will take Udupi plant's long-time debt of around Rs 4,000 crore," it said in a statement.
While 90 per cent of the electricity generated from the plant is supplied to Karnataka, the remaining is given to Punjab.
According to Lanco Infratech, the Udupi plant is the "first independent power project in the country based on 100 per cent import coal with a captive jetty of four million tons per annum and an external coal handling system in the new Mangalore Port Trust."
The capacity can be, if required, expanded to handle another four million ton capacity, it added.
Lanco Infratech already has signed a pact with Karnataka government for expanding the plant's generation capacity to 1,320 MW.
Currently, Adani Power has an installed generation capacity of about 8,580 MW. The proposed acquisition would help in expanding its portfolio.
On July 27, Reliance Power had announced it would acquire three hydel plants of Jaypee Group.