illustration for representation. Photo Credit: Reuters
₹7,017-crore of Adani Power Ltd. Deal to buy thermal power assets of DB Power fell after the initial treaty expired.
Adani Power said in a regulatory filing on Wednesday, “We wish to inform that the long term period under the MoU dated August 18, 2022 has come to an end.”
Earlier in August 2022, Adani Power informed the exchanges that it has agreed to acquire DB Power Limited (DB Power), which owns and operates a 2×600 MW thermal power plant in district Janjgir Champa in Chhattisgarh. conducts.
Queries on the status of the deal sent to Adani Power did not elicit any response.
This is important in view of Fraud allegations against Adani Group by US-based short-seller Hindenburg Research. The issue was also raised in Parliament earlier this month and the opposition too Demand for Joint Parliamentary Committee Along with this, the matter is being investigated under the supervision of the Supreme Court.
The initial period of the MoU (Memorandum of Understanding) was October 31, 2022. The transaction deadline was subsequently extended four times to November 30, 2022, December 31, 2022, January 15, 2023 and February 15, 2023.
DB Power is engaged in the business of setting up, operation and maintenance of Thermal Power Generating Stations in Chhattisgarh.
DB Power has long and medium term power purchase agreements for 923.5 MW of its capacity, supported by fuel supply agreements with Coal India Limited, and is operating its facilities profitably.