CCI approves Adani Power's acquisition of Lanco Amarkantak Power Ltd

Utkarsh Classes Last Updated 27-03-2024

CCI approves Adani Power's acquisition of Lanco Amarkantak Power Ltd

Agreements and MoU 5 min read

On March 26, 2024, the Competition Commission of India (CCI) gave the green light to Adani Power Limited for its complete takeover of Lanco Amarkantak Power Limited. Adani Power Limited, a subsidiary of the Adani Group, is incorporated under Indian laws.

This is Adani Power's second acquisition through the insolvency route in the current financial year.
The detailed orders of CCI will be followed in this process.

Leaders in the business of thermal power generation in India:

Adani Power Limited is engaged in the business of thermal power generation in India.
The Acquirer operates thermal power plants in multiple Indian states, including Gujarat, Maharashtra, Jharkhand and Madhya Pradesh.
Adani Group is a global integrated infrastructure company, operating across key industry sectors – resources, logistics and energy.

About Lanco Amarkantak Power Limited:

Lanco Amarkantak Power Limited (TARGET), a subsidiary of the Lanco Group, is involved in thermal power generation in India.
Target is currently going through the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC).
The proposed combination involves the acquisition of 100 per cent of the equity share capital of the target by the acquirer.
Lanco Amarkantak Power operates two 300 megawatt (MW) thermal power units in the Korba district of Chhattisgarh.
The asset's 600 MW capacity is committed under long-term power purchase agreements with the state distribution companies of Haryana and Madhya Pradesh.
As of December 2023, Adani Power's total gross debt stood at Rs 31,162 crore, down from Rs 42,353 crore at the end of the last financial year.

About Adani Power Limited:

Adani Power Company was started on 22 August 1996.
It is an Adani Group company which implements projects related to the production of electrical energy. Adani Power Limited is headquartered in Ahmedabad, Gujarat.

Some projects prepared by Adani Power:

Mundra Thermal Power Station: 4,620 MW at Mundra in Kutch district of Gujarat
Thermal Power Station: 1,320 MW at Kawai village in Baran district of Rajasthan
Tiroda Thermal Power Station: 3,300 MW at Tirora in Gondia district, Maharashtra
The company produces 40 MW solar power at Bitta, Kutch Gujarat.

Some major projects purchased by Adani Power:

Udupi Power Plant: 1,200 MW more at Padubidri in Udupi district of Karnataka
Raikheda Thermal Power Station, Avantha Korba West Power Station are also included.

About Competition Commission of India (CCI):

The Competition Commission of India (CCI) is a statutory body under the Government of India tasked with enforcing the provisions of the Competition Act, 2002.
CCI was formally constituted in March 2009.
The Monopoly and Restrictive Trade Practices Act, 1969, was repealed and replaced by the Competition Act, 2002, based on the recommendations of the Raghavan Committee.

Objective of formation of CCI:

The objective of CCI is to create a strong competitive environment in the country through various means.

Structure of CCI:

As per the Competition Act, the Commission consists of a Chairman and six members who are appointed by the Central Government.
The Commission is a quasi-judicial body. Advises statutory authorities and also addresses other matters. The Chairman and other members of the Competition Commission of India (CCI) are whole-time members.