India’s Adani Power is in talks to acquire the 600MW Butibori thermal power project in the state of Maharashtra, previously owned by the now-bankrupt Reliance Power, led by Anil Ambani, as reported by Mint.

The deal for the Butibori project, operated by Vidarbha Industries Power, a subsidiary of Reliance Power, is estimated to be valued at between Rs24bn and Rs30bn ($286m-$358m), equating to Rs40m-Rs50m per megawatt (MW).

This valuation is lower than the earlier estimate of Rs60bn ($715m) due to the halt in power generation at the plant. A source explained: "The plant fits into Adani's strategy."

Currently, the CFM Asset Reconstruction Company is the sole lender to the Butibori project, having acquired all its loans for Rs12.65bn ($150m).

Adani Power, with an installed capacity of 15.25GW across nine power plants, is the only independent power producer with in-house mine-to-plant logistics, 60 million metric tonnes per annum (mmtpa) of coal and 13mmtpa of fly ash.

The acquisition is poised to bolster Adani's position in the energy sector and meet India's escalating electricity demands.

The integration of the Butibori project is part of Adani's larger plan to connect its coal-based power plant in Tiroda with Butibori, aiming to provide power supply to Mumbai and its vicinity.

This move is anticipated to give Adani an edge over competitors such as Tata Power and MSEDCL.

In June 2024, India's BHEL secured orders totaling Rs70bn ($837m) from Adani Power for the development of two thermal power plants in India.

The state-owned BHEL is tasked with handling the manufacturing, supply and commissioning of the primary plant equipment for both projects.