RIL, Adani Power set to clash on Nov 25 at Lanco unit auction, says report

A clash is in the offing between the Mukesh Ambani-led Reliance Industries and Adani Power, owned by Gautam Adani, to buy the assets of Lanco Amarkantak Power, according to a report in The Economic Times.

The direct clash between the two major industrialist groups might happen on November 25 during an auction of the assets of the distressed thermal power firm undergoing corporate insolvency.

Citing three people aware of the development, the report said a consortium of Power Finance Corp and REC Ltd, both state-owned, will also participate in the bidding process. PFC and REC jointly hold 41% of the debt in the company.

If RIL wins the bid, it will mark the company’s entry into the thermal power sector.

RIL had already emerged as the highest bidder in the first round of the resolution process. But Adani Power took the first position in the second round with a bid of Rs 2,950 crore. RIL had submitted a bid of Rs 2,000 crore while the PFC-REC pairing has offered Rs 3,870 crore staggered over 10-12 years, the report said.

Now that Adani Power has become the highest bidder after the second round, its Rs 2,950-crore offer will be the base price for the November 25 auction, ET reported.

Lanco runs a coal-based thermal power project on the Korba-Champa state highway in Chhattisgarh. It has commissioned the first phase. The second phase is under construction, and the construction of the third phase has yet to begin.