(PTI) Anil Agarwal-promoted Vedanta on Wednesday said it will acquire bankrupt thermal power company Meenakshi Energy for Rs 1,440 crore through an insolvency process.
Vedanta which made the highest bid for the thermal power company emerged as the successful bidder.
"Post submission of bid for Meenakshi Energy Limited under Corporate Insolvency Resolution Process (CIRP) under IBC, Vedanta Ltd has been declared successful bidder on January 18, 2023 subsequent to which board of directors of Vedanta Limited has approved the acquisition of Meenakshi Energy Ltd," oil-to-metal conglomerate said in a regulatory filing.
The acquisition is estimated to be completed in FY24.
Meenakshi Energy Ltd is a 1,000-MW coal-based power plant located at Nellore, Andhra Pradesh.
On the cost of acquisition, Vedanta said that "the consideration payable is ₹1,440 crore."
Out of the total consideration, ₹312 crore will be paid upfront and the balance ₹1,128 crore will be paid in five equal installments over a period of five years.
"Out of the total consideration, ₹312 crore shall be paid upfront and balance ₹1,128 crore in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy Limited to the financial creditors to be repaid in five equal installments over a period of five years starting from the end of second year," the filing said.
The insolvency process for the thermal power company promoted by Hemant Kanoria and his family began in November 2019.
The resolution professional had received resolution plans from companies like Vedanta and Naveen Jindal-promoted Jindal Power.
The bid submitted by Vedanta was approved by the committee of creditors on January 18, 2023.
The filing further said that the approval of National Company Law Tribunal is pending.
Vedanta currently envisages to operate 1,000 mw of Meenakshi Energy Limited as an independent power producer to carter to the needs of the market by entering into short or medium term power purchase agreements and by supplying power to merchants.