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Adanis' plan to buy Udupi thermal plant from Lanco receives CCI nod

Adanis plan to buy Udupi thermal plant from Lanco receives CCI nod
Clearing the transaction, Competition Commission of India said it is not 'likely to have appreciable adverse effect on competition' in the country.

'... post combination the combined market share of the acquirer, both in terms of installed capacity and electricity generation, would not be significant enough to raise any competition concern,' CCI said in its order, dated 24 October, and released on Thursday.

Besides, the regulator noted that there is no vertical relationship between Adani Power and UPCL as the latter does not use any transmission services provided by Adani Power.

Under the proposed transaction, Adani Power would acquire Udupi Power Corp Ltd (UPCL) from
Lanco Infratech, Lanco Thermal Power Ltd, Portia Properties Pvt Ltd and certain individual shareholders.

UPCL operates the 1,200 MW power plant in Udupi, Karnataka.

'The proposed combination relates to the business of power generation in India. The power generation market in India is characterised by presence of a large number of players,' the order said.

Making the announcement in August, Lanco Infratech had said the deal 'is valued at more than Rs 6,000 crore'. It includes Rs 4,000 crore debt component. 'This transaction will support the company in reducing its debt and will enable Lanco to receive about Rs 2,000 crore as cash and additionally, Adani Power will take Udupi plant's long-time debt of around Rs. 4,000 crore,' it had said.
PTI

PTI

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