Adani Power has initiated discussions to purchase the 600 MW Butibori thermal power project in Nagpur, previously owned by the now-insolvent Reliance Power of Anil Ambani. The deal is expected to be valued between Rs 2,400 crore and Rs 3,000 crore.

Acquiring the project would enable the private thermal power producer to leverage the growing demand for electricity in the country. Adani Power is negotiating with CFM Asset Reconstruction Co (ARC) to acquire the project. The value of the project, which consists of two power plant units, was earlier around Rs 6,000 crore, but currently, the production has stopped.

The Butibori project is operated by Vidarbha Industries Power, a division of Reliance Power. Currently, CFM ARC is the sole creditor of the project, having purchased its loans for Rs 1,265 crore. The Adani Group is looking to expand its thermal power capabilities, amidst rising peak power demand underscoring the need for reliable thermal power capacity.

The acquisition aligns with Adani’s strategy to connect its coal-fired power plant in Tiroda, located around 125 km from Nagpur with the Butibori project. This integration aims to resume power generation and supply electricity to Mumbai and nearby areas.

The Butibori project has a long-term power purchase agreement (PPA) with Maharashtra state for 3,085 MW, with the potential for expansion if the acquisition is completed.