Vedanta to acquire debt-laden Meenakshi Energy for Rs 1,440 crore

Meenakshi Energy was admitted under insolvency resolution in 2019

Metals and mining major Vedanta will acquire debt-laden power plant Meenakshi Energy for Rs 1,440 crore, the company said on Wednesday in a filing to the stock exchanges. 

Vedanta said that the approval of the National Company Law Tribunal for the acquisition was pending. 

Meenakshi Energy is a 1,000-MW coal-based power plant at Nellore in Andhra Pradesh. It was admitted under insolvency resolution in 2019. Vedanta emerged as the successful bidder in the insolvency resolution process and would pay Rs 312 crore upfront for the acquisition. 

The balance of Rs 1,128 crore would be paid in the form of secured, unlisted non-convertible debentures (NCDs) issued by Meenakshi Energy. The consideration will mature in five equal installments over a period of five years, it said.