Adani Power Acquires VIPL for ₹4,000 Cr, Capacity Hits 18,150 MW

Introduction to the Acquisition

Adani Power Ltd. (APL), India's largest private thermal power producer, has successfully completed the acquisition of Vidarbha Industries Power Ltd. (VIPL) for a total consideration of ₹4,000 crore. The transaction was finalized through the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). This strategic move increases Adani Power's total operational capacity to 18,150 MW, further solidifying its leadership in the country's power sector. The resolution plan, approved by the Mumbai bench of the National Company Law Tribunal (NCLT) on June 18, 2025, was fully implemented on July 7, 2025.

Details of the Transaction

VIPL operates a 600 MW (2x300 MW) domestic coal-fired thermal power plant located in the Butibori industrial area of Nagpur, Maharashtra. The company had been facing financial difficulties, leading to its inclusion in the CIRP. Adani Power emerged as the successful resolution applicant in a competitive process designed to revive the stressed asset and ensure its continued operation. The NCLT's approval paved the way for APL to take full control of VIPL, making it a wholly-owned subsidiary.

Breakdown of the Resolution Plan

The ₹4,000 crore resolution plan provides a structured settlement for VIPL's stakeholders. Secured financial creditors are set to receive ₹3,706.09 crore, which accounts for nearly 60% of their admitted claims. In addition, they will be allotted 26% of the equity shares in the revived company. A sum of ₹1 crore has been allocated for operational creditors. The plan also covers unpaid CIRP costs amounting to ₹292.91 crore, which will be paid on a priority basis. Adani Power has committed to funding any future revival and maintenance costs from its own resources, separate from the resolution amount.

Legal Proceedings and Final Approval

The path to acquisition was not without challenges. Appeals were filed against the NCLT's approval by Western Coalfields Limited and a group of VIPL employees. However, the National Company Law Appellate Tribunal (NCLAT) in Delhi reviewed and subsequently dismissed these appeals. The appellate tribunal found that the resolution plan did not violate any provisions of the Insolvency and Bankruptcy Code and that the Committee of Creditors had acted within its commercial wisdom. This final legal clearance cemented the acquisition and allowed for the smooth implementation of the resolution plan.

Strategic Importance for Adani Power

This acquisition is a significant step in Adani Power's strategy of turning around stressed assets to unlock value. SB Khyalia, CEO of Adani Power Ltd., described the deal as a "key milestone." He stated, "As we continue expanding our portfolio, we remain committed to supporting India’s vision of ‘Electricity for All’ by delivering reliable, affordable base-load power that fuels the country’s sustainable growth." The addition of the 600 MW plant enhances APL's presence in Maharashtra and aligns with its long-term growth objectives.

Ambitious Expansion and Future Outlook

Adani Power is not stopping with this acquisition. The company is actively pursuing an aggressive expansion strategy to reach an operational capacity of 30,670 MW by 2030. This expansion is driven by a mix of brownfield and greenfield projects. Currently, APL is constructing six brownfield Ultra-Supercritical Thermal Power Plants (USCTPPs) of 1,600 MW each at its existing sites in Madhya Pradesh, Chhattisgarh, and Rajasthan. Additionally, a 1,600 MW greenfield USCTPP is under development in Mirzapur, Uttar Pradesh. The company is also reviving a previously acquired 1,320 MW supercritical power plant in Korba, Chhattisgarh.

Market Position and Financial Health

With this acquisition, Adani Power reinforces its position as India's largest private base-load power generation company. The company's portfolio is spread across multiple states, including Gujarat, Maharashtra, Karnataka, Rajasthan, and Chhattisgarh, complemented by a 40 MW solar plant in Gujarat. The broader Adani Group reported strong financial performance in FY25, with a consolidated revenue of ₹2,71,664 crore. On the day of the announcement, shares of Adani Power closed at ₹140.30, reflecting minor market fluctuations.

Conclusion

The successful acquisition of Vidarbha Industries Power Ltd. for ₹4,000 crore is a testament to Adani Power's strategic focus on growth and value creation from stressed assets. By increasing its operational capacity and clearing legal hurdles, the company has strengthened its market leadership. With a clear roadmap for expansion and a target of nearly doubling its capacity by 2030, Adani Power is poised to play an even more critical role in India's energy security and economic development.