Adani Group is mulling acquisition of Vidarbha Industries Power (VIPL), a subsidiary of Reliance Power, which supplies electricity to Adani Electricity in Mumbai. The talks between Adani Group and Reliance Power are at an early stage.
VIPL operates two 300 MW units at Butibori in Maharashtra, but it has not been generating any power since mid-January 2019 after Coal India (CIL) stopped supplying coal over an ongoing litigation which is in the Delhi High Court and issues relating to payment.
VIPL had shut its first unit of 300 MW before that. The acquisition cannot happen with the current power purchase agreement (PPA) because the tariff is very high. Any potential acquisition will be guided by Adani Electricity’s internal target of reducing average cost of power to about Rs four per unit.