Adani Energy Solutions looks to divest Dahanu unit to Adani Power
Power transmission and distribution entity Adani Energy Solutions (AESL) looks to divest its Dahanu power plant to group entity Adani Power, according to people in the know. The move is in line with past asset sales within group entities.
Last week, AESL said the company, honouring its ESG commitment, has decided to divest the Dahanu thermal plant. According to people in the know, AESL looks to divest the asset to group entity Adani Power.
Adani Power, also a listed entity, currently operates a thermal power capacity of 15.25 gigawatts (GW).
An email query sent to the company on Friday remained unanswered.
In its annual report for FY24, Adani Energy noted plans to carve out the Dahanu asset in the current financial year. The 500 MW generation unit is a legacy asset that was part of the Mumbai power distribution business that Adani Energy acquired from Anil Ambani’s Reliance Infrastructure in 2018.
Details on what valuation or structure the divestment between the two entities will take place is unknown. In its June 2024 quarter results, however, Adani Energy said it is taking a one-time impairment of Rs 1,506 crore in relation to the divestment of the asset.
If executed, the deal between Adani Power and AESL will be in line with other group entities such as Adani Enterprises and Ambuja Cements. In June, Adani Enterprises said its board has approved a scheme to merge Stratatech Mineral Resources Private Limited, its wholly-owned subsidiary, with Mahan Energen Limited, a wholly-owned subsidiary of Adani Power.
The rationale for the move, Adani Enterprises then said, was “SMRPL is the allocatee of Dhirauli coal mine and is (currently) part of the Commercial Mining segment under the Natural Resources (NR) vertical of Adani Enterprises, which is gradually moving towards development and operation of mines (MDO).”
In the same month, Adani Group also announced a merger and ownership restructuring for its cement assets housed under Ambuja Cements and Adani Enterprises. As part of the scheme, Adani Cementation will be merged with Ambuja, while Adani Cement Industries will become a wholly-owned subsidiary of Ambuja Cements.
First Published: Jul 29 2024 | 6:38 PM IST