Nagpur: In a major development in the energy sector, Adani Power Ltd has completed the acquisition of Anil Ambani-led Reliance Group’s power plant at Butibori for a reported sum of Rs 4,000 crore. The transaction was officially concluded on Tuesday, marking a significant boost to Adani’s footprint in Maharashtra’s Vidarbha region, a report in a local daily said.
The power plant, operated under Reliance’s subsidiary Vidarbha Industries Power Limited (VIPL), was originally set up over a decade ago with a generation capacity of 600 MW (two units of 300 MW each). It was initially intended to serve as a group captive power plant (GCPP) to supply affordable electricity to industries in the Butibori MIDC and nearby areas. However, the plan faltered and the plant’s status was later converted to that of an independent power producer (IPP), eventually supplying electricity to Mumbai.
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The buyout elevates Adani’s power generation capacity in Vidarbha from its existing 3,300 MW plant at Tiroda in Gondia to 3,900 MW — surpassing the combined capacity of the Maharashtra State Power Generation Company’s (Mahagenco) Koradi and Khaparkheda stations.
The acquisition comes following a resolution plan approved by the Bombay bench of the National Company Law Tribunal (NCLT) on June 18 under the Insolvency and Bankruptcy Code (IBC). The plan was officially implemented on July 7, according to a note released by the Adani Group.
VIPL had been undergoing corporate insolvency proceedings after facing a series of operational and financial setbacks. Once a supplier of power to Mumbai — when Reliance Group held power distribution rights in parts of the city — the plant’s fortunes declined after Adani Power took over the Mumbai distribution network and chose not to renew the power purchase agreement (PPA) with VIPL.
Sources indicate that coal supply constraints and broader financial distress within the Reliance Group also hampered the plant’s performance. Now, with Adani at the helm, there is hope for revival.
Nitin Lonkar, former secretary of the Butibori Manufacturers Association (BMA), said the local industry remains optimistic that the takeover could rejuvenate the original plan of providing captive power to Butibori’s industrial units. “We remember the promise with which this plant was envisioned. We hope Adani Group explores that potential,” he said.
Meanwhile, Adani Group sources said that future plans regarding power supply from the VIPL plant are still under consideration.
