Vedanta Limited will acquire debt-ridden Athena Chhattisgarh Power Limited for Rs 5.65 billion.
The acquisition will fulfill the power requirement for Vedanta’s aluminium business and through vertical integration, add synergies by providing a cost advantage pertaining to power consumption. Athena Chhattisgarh Power has a 1,200 MW coal-based power plant located at Jhanjgir Champa district in Chhattisgarh. The unit 1 and unit 2 of the power plant are 80 per cent and 30 per cent complete respectively. Liquidation process for the company was initiated in May 2021. The acquisition is likely to be completed during 2022-23 and the consideration will be in the form of cash.