Gautam Adani is going to bid for the coal-fired power plants promoted by Anil Ambani that are currently under auction, Bloomberg reported quoting people aware of the matter. Adani Group may face intense competition for Vidarbha Industries Power Ltd which operates 600-megawatt generation facilities in central India, the report added.
Adani Group’s successful bid for the power plant would add to its expanding portfolio of coal power projects. It would be a big boost as the conglomerate efforts to recover from a devastating short-seller report by Hindenburg Research in January. The freshly raised capital of $2.8 billion will provide the required confidence to the group.
Moreover, the Adani Group is looking to expand core fossil-fuel projects and as per the sources, Bain Capital and Carlyle Group Inc. are some of the potential bidders for the shadow bank, Adani Capital. The move comes as Adani plans to keep cash in hand and redirect its focus on the key businesses.
The report mentions that Anil Ambani is also considering offering bids in the hope to take back control of the power plant. The auction comes as another blow to the beleaguered businessman who is battling creditors for years. Recently, the Enforcement Directorate (ED) also questioned Anil Ambani in the case of alleged forex violations. As per the sources, the questioning was around the alleged violations of the Foreign Exchange Management Act (FEMA) which surfaced during the Income-Tax (I-T) department’s probe into his offshore assets.
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Updated: 11 Jul 2023, 07:44 PM IST