Lanco Infratech sold its 1,200 MW (2 x 600 MW) Udupi Power plant to Adani Power, on Wednesday.

As part of the Rs 6,000 crore deal, Lanco will get Rs 2,000 crore and Adani Power will take over Udupi Power’s long term debt of around Rs 4,000 crore.

The thermal power plant’s capacity can be expanded as Lanco Udupi Power has already signed an agreement with the Karnataka government for further expansion of the capacity by 1,320 MW.

This is the country’s first independent power project that is based on 100 per cent imported coal. It supplies 90 per cent of the power generated to Karnataka, and 10 per cent to Punjab.

The Udupi plant also has a captive jetty of four million tonne per annum and an external coal handling system in the new Mangalore Port Trust. The capacity can be expanded to handle another four million tonne.

As on 3 April 2014, Adani Power had a generation capacity of 8,620 MW, making it India’s largest private power producer.

Earlier, JSW Energy and 1 Malaysia Development Bhd (1MDB) were in talks to acquire Lanco’s Udupi plant.