Adani Group in talks to buy Avantha Power & Infrastructure’s Madhya Pradesh power project
JHABUA: The Adani Group is in talks to acquire Avantha Power & Infrastructure’s 1,260-Mw power project in Madhya Pradesh, in what would be a second such deal between the two companies. Avantha Power was believed to be in talks with a consortium of Tata Power and ICICI Venture to sell its Jhabua Power unit but now the company has sent a proposal to Adani Power for a possible deal, two people aware of the development told ET.
“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,” one of them said.
Gautam Adani-led Adani Power has been on a buying spree and has so far acquired Avantha’s Korba Power (600 Mw) and Lanco Infratech’s Udupi Power (1,200 Mw) projects for a total value of .`10,500 crore to beef up its power generation portfolio. Both the acquired projects were the best generating units of the original developer. On the other hand, Gautam Thapar’s Avantha Group, which entered the sector with ambitious plans of adding capacity and subInfrasequently listing its power company, has changed gear and is now looking to exit as part of a strategy to streamline businesses. Avantha declined to comment. “As a policy, the Avantha Group does not comment on rumours and speculations,” the company said. Adani Power also declined to comment.