Tata Power to sell Wadi units to ACC for Rs 238 crore

Tata Power plans to sell two power generation units located at Wadi in Gulbarga district of Karnataka to Associated Cement Companies (ACC) for Rs 238 crore.

The company has informed the stock exchange that it proposes "to transfer power generation units number one and two comprising of turbines and steam generators as a "going concern" on a slump sale basis to ACC for Rs 238 crore".

The company is also seeking members' approval through a postal ballot. The results of the ballot will be announced on November 4, 2004, the company informed the exchange.

In the late 1990s, the Tata group transferred all the captive power plants from various group companies to Tata Power. By virtue of ACC then being a Tata group company, the power plant at Wadi was transferred to Tata Power. Besides ACC, the captive power plant of Tata Steel, 307.5 MW Jojobera Thermal station was also transferred to Tata Power.

With ACC out of its fold, Tata Power plans to sell the power unit to the cement major. The Wadi unit continues to meet the entire power requirements of ACC at Wadi.

In 2002-03, the Wadi unit recorded the highest-ever generation of 478 MUs compared with 403 MUs in the previous year, an increase of 18.4 per cent. As a result, the plant load factor increased to 72.7 per cent from 61.4 per cent in the previous year.