Adani Power Ltd is in advanced negotiations to acquire the 600 MW Butibori thermal power plant in Nagpur from Reliance Power Ltd, which is undergoing insolvency proceedings, according to a report by a newspaper. The transaction is projected to be valued between ₹2,400 crore and ₹3,000 crore, translating to approximately ₹4 crore to ₹5 crore per MW.
The acquisition will bolster Adani Power’s position in the Indian electricity market, capitalizing on the increasing demand for power. The deal involves purchasing the plant from CFM Asset Reconstruction Co, which is managing the project under Vidarbha Industries Power Ltd, a Reliance Power unit.
The project’s previous valuation was around ₹6,000 crore, but its current operational halt has led to a reduced valuation. The purchase is expected to be financed through Adani Group’s internal funds. JSW Energy Ltd, led by Sajjan Jindal, initially showed interest but later withdrew due to valuation and operational concerns.
The Butibori plant had previously supplied power to Reliance Power’s Mumbai distribution network until Adani Electricity Mumbai Ltd took over. The power purchase agreement between Vidarbha Industries and Adani expired on December 16, 2019, leading to financial strain for the project.
The Adani Group is aiming to enhance its thermal power portfolio amid ongoing coal shortages. The acquisition would integrate the Butibori plant with Adani’s existing coal-fired Tiroda plant, situated 125 km away on the Bhandara-Gondia highway.
This integration is intended to revitalize power generation and bolster electricity supply to Mumbai and surrounding regions, strengthening Adani’s competitive edge over rivals Tata Power and MSEDCL. The Butibori plant has a long-term Power Purchase Agreement with Maharashtra for 3085 MW, with expansion possibilities if the acquisition proceeds.
