New Delhi: A day after sealing a 6,000 crore deal to acquire the 1,200 megawatt (MW) Udupi power plant, Adani Group chairman Gautam Adani on Thursday said it is time now for consolidation in the Indian power sector.

Marking another big ticket transaction in the domestic power sector, Adani Power has agreed to acquire Lanco Infratech’s Udupi thermal plant in a deal worth over 6,000 crore. “Now is the time for consolidation in the Indian power sector. As a leading private power producer, Adani Power has taken the lead and acquired the Udupi thermal project... This marks our entry into southern India and we are bullish of expanding our presence further in the country," the Adani Group chairman said in a statement. Adani Power Ltd is part of the diversified Adani group.

According to him, the company is confident of having a 20,000 MW power generation capacity by 2020. The Adani Power-Lanco Infratech deal came less than three weeks after Reliance Power agreed to acquire three hydel projects of Jaypee Group. Adani Power was also in the race for those hydro plants. The acquisition of Udupi plant is a “strategic fit to the integrated infrastructure business model of the Adani Group", the statement said.

“With one more unit of 660 MW commissioning at Tiroda (plant) shortly and the acquisition of 1,200 MW Udupi power plant, the installed base of Adani Power will increase to 10,440 MW," it added.

At present, the company has a generation capacity of 8,580 MW. Adani Power has executed “a definitive agreement" for acquiring 10% shares of Udupi Power Corp. Ltd from Lanco Infratech.

Udupi Power Corp. is implementing the 1,200 MW plant.

The group would endeavour to expand the Udupi plant’s generation capacity “expeditiously" by leveraging its project execution capabilities.

“Adani Power is also committed to seize further opportunities for capacity addition and provided much needed energy security of Southern India," the statement noted.

A pact has already been inked with Karnataka government for expanding the plant’s generation capacity to 1,320 MW.

On Wednesday, Lanco Infratech had said the deal would enable Lanco to receive about 2,000 crore as cash and Adani Power would take the Udupi plant’s long-time debt of around 4,000 crore.

While 90% of the electricity generated from the Udupi plant is supplied to Karnataka, the remaining is given to Punjab. P

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