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Adani Group has concluded the Rs 4200 crore deal to purchase Avantha group's 600MW Korba West power plant.
The two companies signed an MoU last November and have now signed a binding share purchase agreement for hundred percent acquisition of the power plant, Avantha group announced today.
The deal makes Adani Power the largest private sector power utility in the country with an installed capacity of 11,040 MW. The company has set a target of 20,000 MW capacity by 2020.
Avantha Group has been under pressure to cut debt raised through private equity firms and banks for its power business. Last November it had announced the sale of a 600-Mw power plant in Chhattisgarh to Adani Power for Rs 4,200 crore and is exiting from power generation business. The group plans to sell its under construction power plant in Madhya Pradesh.
