Nagpur: Adani Power Ltd is in advanced discussions to acquire the 600 MW Butibori thermal power project in Nagpur, previously owned by the now-insolvent Reliance Power Ltd, in a deal valued at ₹2,400 crore to ₹3,000 crore, according to a report by Mint.
The plant, operated by Vidarbha Industries Power, a subsidiary of Reliance Power, has halted operations, significantly lowering its valuation. Adani Power is negotiating with CFM Asset Reconstruction Co., the sole creditor of the project, which purchased its loans for ₹1,265 crore. The acquisition, if finalized, will be funded through Adani’s internal accruals.
The Butibori project’s sale is expected to bolster Adani’s position as India’s top private thermal power producer, enabling it to meet the growing electricity demand. Initially, JSW Energy expressed interest but withdrew due to valuation concerns.
The Butibori plant previously supplied power to Mumbai under a power purchase agreement that expired in 2019, leading to financial struggles and bankruptcy filings against Vidarbha Industries Power.