Daijiworld Media Network – Udupi (SP)

Udupi, Aug 14: If sources are to be believed, Udupi Power Corporation Ltd (UPCL), the power plants of which with a capacity of 1,200 mw operate at Yellur, Nandikoor near Padubidri in the district, will soon be acquired by Adani Group. Adani, which has considerable presence in power generation sector, is believed to have finalized a deal with Lanco Infratech Group from Andhra Pradesh which owns UPCL, for a whopping purchase consideration of Rs 6,000 crore. Adani Group already generates 8,580 mw of power.

It is said that Adani Group, trying to become a major player in power production sector, had earlier tried to acquire three hydro electric projects of Jeypee Group, but Reliance sealed the deal and acquired them about three weeks ago.

During last month, there were rumours that Jindal Group, which is a leading steel and aluminum manufacturing company with diversification in other fields, had shown interest in acquiring UPCL. It is learnt that even the top officials in UPCL working in its administrative office at Bangalore and those working at Yellur, were kept in the dark about the ongoing negotiations. The deal was clinched at New Delhi, sources added.

Out of the power generated by UPCL, which entirely depends on imported coal for thermal power generation, 90 percent is utilized by Karnataka, while the rest goes to Punjab, it is gathered. The above deal includes a liability of Rs 4,000 crore Lanco had raised. Adani will take over this loan, and pay the balance of Rs 2,000 crore to Lanco Infratech, it is learnt. UPCL already has entered into an agreement with Karnataka government to raise its generation capacity to 1,320 mw as it has provision to increase its coal import through the jetties it owns at New Mangalore Port.