The Raikheda power plant, which utilises boiler and turbine generator equipment supplied by Doosan Heavy Industries, is situated close to the coal bearing areas of Chhattisgarh. This locational advantage will allow GCEL to source domestic coal with lower logistics cost, and make it more competitive while bidding for long-term power purchase agreements (PPAs). GCEL presently supplies power to Gujarat under a short-term, 1000 MW Case 4 PPA with the Gujarat Urja Vikas Nigam Ltd.
The addition of 1370 MW capacity, along with the recently concluded acquisition of the 600 MW Korba West Power Co. Ltd., solidifies APL’s position as India’s largest private sector thermal power producer, with aggregate operating capacities of 12 450 MW and gives it a strong presence in India’s leading power generating as well as power consuming regions.
With these developments, APL is now uniquely poised to contribute to the forthcoming growth phase of India’s electricity sector, driven by a robust economic growth, as well as an increase in the market size led by reforms under the government’s ambitious ‘power for all’ vision. APL now has a healthy mix of open capacities as well as capacities tied up in long-term PPAs, which provide it long-term visibility while allowing it to tap into real growth opportunities. The Adani Group, with its established pit-to-plug presence, is confident of leveraging its strengths to achieve its long-term goals, and contributing significantly to nation building.
This pre-eminent position of APL will be further consolidated upon completion of the 1600 MW (two 800 MW) Ultra-supercritical power project, which is being constructed in Godda District of Jharkhand for supply of power to Bangladesh, and take the aggregate generation capacity to 14 050 MW.
SBI Capital Markets Limited acted as the M&A advisor for the transaction and has played a pivotal role in concluding the deal. Cyril Amarchand Mangaldas was the legal advisor and Luthra & Luthra Law offices acted as the lenders’ legal counsel.
