Adani power urges Gujarat government to bail out Mundra power plant
MUMBAI: Billionaire Gautam Adani led-Adani Power has approached state-run Gujarat Urja Vikas Nigam (GUVNL) to bail out its Mundra power plant, which stares at financial unviability after the Supreme Court in April quashed the company’s plea for tariffs that would have compensated escalations in Indonesian coal costs.
Adani PowerBSE 1.68 % is hiving off its 4,600 mw-thermal power plant into a separate subsidiary, and is exploring all options for financial revival, including a potential sale of substantial stake in the new subsidiary. According to two industry executives, Adani is believed to have offered a substantial stake in the Mundra power plant to GUVNL, which is in a power purchase pact to source 2,000 mw from the unit.
“Consequent to the outcome of the Supreme Court judgement, we have engaged with the stakeholders, including GUVNL, for possible remedial measures for long-term sustainability of the Mundra Plant and various options are being explored presently,” an Adani Power spokesperson told ET.