Troubled Meenakshi Energy Ltd becomes wholly-owned arm of Vedanta

Anil Agarwal-promoted Vedanta on Wednesday said Meenakshi Energy Ltd has become its wholly-owned subsidiary.

The National Company Law Tribunal had earlier approved Vedanta’s acquisition of Meenakshi Energy for Rs 1,440 crore.

“Meenakshi has allotted 10,00,000 fully paid-up equity shares of Rs 10 each amounting to equity capital of Rs 1 crore to the company, consequent to which, Meenakshi has become a wholly-owned subsidiary of the company with effect from December 27,” Vedanta said in a regulatory filing.

Vedanta had earlier said that it will acquire bankrupt thermal power company Meenakshi Energy for Rs 1,440 crore through an insolvency process.

“This letter is in continuation to the stock exchange announcements made by Vedanta Limited (the company) vide its letters dated August 11, 2023 and January 18, 2023 pursuant to Regulation 30 of Listing Regulations regarding the acquisition of Meenakshi Energy Ltd (Meenakshi) under Corporate Insolvency Resolution Process in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016,” the filing said.

Meenakshi Energy Ltd is a 1,000-MW coal-based power plant located at Nellore, Andhra Pradesh.

The insolvency process for the thermal power company promoted by Hemant Kanoria and his family began in November 2019.

The resolution professional had received resolution plans from companies like Vedanta and Naveen Jindal-promoted Jindal Power.

The bid submitted by Vedanta was approved by the committee of creditors on January 18, 2023.

Vedanta had earlier said that it currently envisages to operate 1,000 mw of Meenakshi Energy Ltd as an independent power producer to carter to the needs of the market by entering into short or medium-term power purchase agreements and by supplying power to merchants.

First Published: Dec 27 2023 | 11:07 PM IST