Adani Group inks Rs. 400 crore deal to buy Welspun’s two ready-to-build coal plants.

Adani Group of billionaire Gautam Adani has signed an initial agreement to buy two ready to build coal fired power plants from Welspun group for Rs. 400 crore, two people with direct knowledge of the matter said.

The plants - one in Uttar Pradesh and other in Madhya Pradesh - have received all the necessary clearances and can together generate 4000 Mw of power. They will be transferred to the ports-to-power conglomerate along with 2,000 acres by December, the sources said. Adani group declined to comment, while Welspun had not responded to questionnaire emailed recently.

Adani group, which had been purchasing debt-ridden power plants in the past, has now shifted its strategy to buy ready-to-build plants with all necessary clearances and power purchase agreements, and use its core area of execution in building power plants rather than taking over running plants with heavy loans.

A ready to build power plant can be completed in three years. The proposed deal with Welspun also fits well with its strategy of going across India rather than being focused on Gujarat.

Last year Adani group had announced that it signed definite agreements to buy Avantha's Korba Power (600 MW), owned by Guatam Thappar, and Lanco Infratech's Udupi Power (1,200 MW) for a total of Rs. 10,500 crore to beef up its power generation portfolio.


ET