"Adani Energy Solutions Set to Divest Dahanu Unit to Adani Power"

Adani Energy Solutions Limited (AESL) is reportedly preparing to divest its Dahanu power plant to Adani Power, according to sources familiar with the matter. This move is consistent with the company's previous strategy of transferring assets within its group entities.

AESL announced last week that, in alignment with its environmental, social, and governance (ESG) commitments, it plans to sell the Dahanu thermal plant. The 500 MW facility, a legacy asset from its 2018 acquisition of Mumbai's power distribution business from Anil Ambani's Reliance Infrastructure, is set to be transferred to Adani Power.

Adani Power, a publicly listed company, currently operates a thermal power capacity of 15.25 gigawatts (GW). The details regarding the valuation or specifics of the potential deal have not yet been disclosed. AESL has yet to respond to queries about the transaction, which was also highlighted in its FY24 annual report.

In its June 2024 quarter results, AESL indicated a one-time impairment of Rs 1,506 crore related to the divestment of the Dahanu plant. If the transaction proceeds, it will align with similar intra-group moves, such as Adani Enterprises' recent merger of its subsidiary Stratatech Mineral Resources Private Limited with Mahan Energen Limited, a unit of Adani Power.

Additionally, the Adani group has been active in restructuring its cement assets. In June, Adani Enterprises announced a merger of Adani Cementation with Ambuja Cements, and Adani Cement Industries will become a wholly-owned subsidiary of Ambuja Cements, part of a broader restructuring strategy.

For further updates, inquiries have been directed to Adani Power, with a response pending.

BS