The National Company Law Tribunal (NCLT) has approved Adani Power’s acquisition of Vidarbha Industries Power (VIPL) for Rs 4,000 crore, marking a significant step in the resolution of the debt-laden power company.

The Mumbai bench of the NCLT observed that the resolution plan, backed by 100 percent of the Committee of Creditors (CoC), meets all viability and feasibility requirements. No objections were raised by stakeholders during the Corporate Insolvency Resolution Process (CIRP). VIPL, previously a subsidiary of Anil Ambani’s Reliance Power, owns a 600 MW thermal power plant in Nagpur, Maharashtra, consisting of two 300 MW units.

The company defaulted on Rs 3,872 crore in loans to Axis Bank and State Bank of India, later acquired by CFM Asset Reconstruction in 2023. Total admitted liabilities stood at Rs 6,753 crore. The Butibori-based plant, originally awarded via international bidding by MIDC, has a long-term PPA for 3085 MW with expansion potential. Adani Power’s resolution plan is now binding on all stakeholders and awaits final regulatory implementation.