Adani Power to buy AES 49% stake in Odisha Power for $135mn

The deal marks Adani Power's foray into the state, and it demonstrate the Adani Group's long-term commitment to develop and operate high quality infrastructure in Odisha.

Adani Power will buy 49 per cent equity stake in Odisha Power Generation Corporation (OPGC) from US based AES Corporation for $135 million. The Odisha government will retain its 51 per cent stake in the utility that operates a 1,740 MW thermal power plant in the state's Jharsuguda district.

The deal marks Adani Power's foray into the state, and it demonstrate the Adani Group's long-term commitment to develop and operate high quality infrastructure in Odisha, the company said.

AES and Adani Group are already partner in renewables and energy storage business in the country. “The transaction is subjected to customary regulatory approvals, including compliance with applicable requirements in relation to the government of Odisha and the receipt of regulatory approvals such as Competition Commission of India and Reserve Bank of India,” it added.

The American Company said in a separate statement that the stake sale was a part of its global strategy to reduce the share of coal in its portfolio. AES said coal will now account for 35 per cent of its generation, down from 45 per cent previously.