ELECTRICITY generation in the Butibori’s biggest power plant, Rel Power, may soon start as Adani Power is exploring opportunities to buy it for a value of Rs 2,000 - Rs 3,000 crore. According to highly placed sources the Gautam Adani-led group is likely to take over the plant and start power generation very soon. The value of the deal could translate into Rs 4-5 crore per MW. The 600 MW coal-fired thermal power plant comprising two units of 300MW each in the Butibori industrial area in the district was closed in 2019. The project could have been valued near Rs 6,000 crore. However, it has been shut and that has affected its valuation, the sources added.

 

The power plant, which was once owned by bankrupt Reliance Power, is now under Vidarbha Industries Power, a subsidiary of Rel Power. The Adani-led group is talking to CFM Asset Reconstruction Company, which is the only lender to the power project. Last year, CFM Asset Reconstruction Company became the new and sole lender of Vidarbha Industries Power after it acquired its loans from various lenders at Rs 1,265 crore. The plant, set up in 2013-14, was one of the most modern power generation plants in the country. It was also considered as one of the most compact power plants in the country. Another positive factor is that the plant is connected to a railway station with its 26km-long siding. Railway track connectivity gives added advantage to a power plant as it significantly reduces coal transportation. There were about 1,000 direct and indirect employees working in the plant.

 

It is important to note that the Adaniled group has a coal-based plant at Tiroda in adjoining Gondia district. It has a total capacity of 3300 MW. All units at this location are of Supercritical Technology, driving efficiency in coal based power generation. The proposed acquisition could be a part of Adani's strategy to integrate its Tiroda plant with Butibori plant, resume power generation and supply electricity to Mumbai and surrounding regions to gain an edge over rivals. The Tiroda plant is approximately 125km away from the Butibori plant. Company officials refused to comment on the matter when contacted.