Vedanta to buy Athena Chhattisgarh Power for Rs 564 crore

Vedanta Ltd on Thursday said it will acquire debt-ridden Athena Chhattisgarh Power Ltd for Rs 564.67 crore.

Liquidation process for the company was initiated in March last year.

The acquisition for a purchase price of Rs 564.67 crore is likely to be completed in the ongoing financial year, adding that the consideration will be in the form of cash.

"Vedanta Limited to acquire 100 per cent of the paid-up capital of Athena Chhattisgarh Power Ltd," the metals and mining major said in a filing to BSE.

The acquisition will fulfill the power requirement for Vedanta aluminium business and through vertical integration, add synergies by providing a cost advantage pertaining to power consumption.

Athena Chhattisgarh Power Ltd has a 1,200 MW coal-based power plant located at Jhanjgir Champa district in Chhattisgarh.

Athena was admitted under Corporate Insolvency Resolution Process on May 15, 2019. On May 13 last year, a bench of NCLT Hyderabad directed initiation of the liquidation process of the company.

The unit 1 and unit 2 of the power plant are 80 per cent and 30 per cent complete, respectively. Therefore, the company has never been operational, the filling said.

The power plant is well connected to national highways and railway stations and is also located in close proximity to its water source, Mahanadi river and fuel source.