New Delhi: The National Company Law Tribunal (NCLT) has approved Adani Power Limited’s Rs 4,000-crore resolution plan for the acquisition of Vidarbha Industries Power Limited (VIPL), marking a significant addition to the company’s growing portfolio of thermal power assets. The Mumbai bench of the NCLT passed the order on June 18 and uploaded it to its portal on Thursday. The tribunal’s approval clears the way for Adani Power to take control of VIPL — an unlisted, Nagpur-based power company that owns a 600 MW coal-fired power plant and has been undergoing insolvency proceedings since September 2024.
According to the resolution professional’s filings and NCLT documents, Adani Power was declared the 'Successful Resolution Applicant' in February 2025 after a structured challenge-based bidding process that drew final bids from four players — NTPC, Vedanta, Capri Global, and Adani. The process, designed to maximise value, involved multiple rounds of commercial offers and a challenge mechanism that required bidders to outbid each other in Rs 50-crore increments.
The Committee of Creditors (CoC), represented solely by CFM Asset Reconstruction Pvt Ltd (assignee of loans from Axis Bank and SBI), evaluated all bids and unanimously voted in favour of Adani Power’s plan at its 10th meeting held on February 19, 2025.
Adani Power’s resolution plan involves an upfront cash infusion of Rs 4,000 crore, fully funded through internal accruals or borrowings, and will be completed within 30 days of the tribunal’s approval—by July 17, 2025.
According to stock exchange disclosures filed by Adani Power and details from the NCLT order, secured financial creditors with admitted claims of Rs 6,200 crore will recover about Rs 3,706 crore — roughly 60 percent of their dues. Operational creditors, including employees and vendors, who had admitted claims worth over Rs 553 crore, will receive just Rs 1 crore in total— less than 0.2 percent.
No payments are proposed to existing shareholders. The company’s entire share capital will be extinguished and replaced with fresh equity subscribed by Adani Power, which will hold 100 percent of VIPL’s shares.
The fair value of VIPL’s assets was assessed at Rs 1,719 crore, and its liquidation value at Rs 1,263 crore. Adani’s Rs 4,000-crore offer represents a significant premium, suggesting a long-term strategic bet on the company’s revival and potential value realisation.
The resolution plan also accounts for substantial corporate insolvency resolution process (CIRP) costs, which are estimated at around Rs 1,470 crore, including plant revival, regulatory compliance, and maintenance expenses.
In its filing to the stock exchanges under Regulation 30 of SEBI’s listing rules, Adani Power stated that the transaction does not constitute a related-party transaction, and that no further regulatory approvals are required for implementation. The resolution plan is now binding on all stakeholders, including government departments, creditors, and employees.
This acquisition aligns with Adani Power’s broader M&A strategy of acquiring distressed but strategically located thermal assets through the insolvency route. Similar past acquisitions include the Raipur and Raigarh power plants from Avantha and the Udupi Power plant from Lanco. With the addition of VIPL, Adani’s installed capacity will increase to 18,150 MW, reinforcing its position as India’s largest private thermal power generator.
The plant’s location in Maharashtra — a high-demand industrial state — offers operational synergies. According to the NCLT documents, VIPL recently bid to supply 540 MW of power to Adani Energy Solutions, suggesting that intra-group integration is already underway.
Incorporated in 2005, VIPL operates a 600 MW domestic coal-based power plant in the Butibori Industrial Area near Nagpur. It entered insolvency after defaulting on its debt obligations, which were later assigned to CFM Asset Reconstruction Pvt Ltd. VIPL reported minimal revenue in the past three years, with turnovers under Rs 10 crore annually, due to prolonged operational shutdowns.
