Mumbai: Billionaire industrialist and Adani Group chairman Gautam Adani will buy DB Power for more than Rs 7,000 crore. This would be his second biggest M&A in the electricity sector after SB Energy India (for which some Rs 26,000 crore was shelled out last year). Adani is buying DB’s 1,200-megawatt (MW) coal-fired power plant in Janjgir Champa, Chhattisgarh.
DB has power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India, and has been operating its facilities profitably, said Adani Group’s power arm. The deal, which requires the approvals of the country’s anti-trust agency and other regulators & stakeholders, will expand Adani’s thermal power operations in Chhattisgarh.
In 2019, Adani Power had acquired GMR Group’s 1,370MW plant in Chhattisgarh for Rs 3,530 crore. That same year, it had also bought Avantha Group’s 600MW unit in Chhattisgarh. The DB deal will further solidify Adani’s position as India’s largest private sector thermal power producer with an aggregate operating capacity of over 12,450MW, and gives it a strong presence in the country’s leading power generating and consuming belts.
