Adani Power Ltd has received approval from the National Company Law Tribunal (NCLT) to acquire Vidarbha Industries Power Ltd (VIPL), a bankrupt firm that was once a subsidiary of Anil Ambani-led Reliance Power Ltd. On June 18, the tribunal cleared Adani Power’s ₹4,000 crore resolution plan after it received unanimous support from secured creditors earlier in February.
Details of the Resolution Plan
Vidarbha Industries Power Ltd owns a 600-megawatt thermal power plant in Nagpur and had admitted liabilities amounting to ₹6,753 crore. Under the approved resolution plan, Adani Power will acquire the company by paying ₹4,000 crore. The Committee of Creditors (CoC) had given 100% voting in favour of the plan, and the NCLT confirmed it was viable for revival.
In its ruling, the tribunal stated that the plan meets all the necessary requirements and is binding on all parties involved, including VIPL’s employees, creditors, members, and guarantors. The judgment noted that no stakeholders objected to the plan during the Corporate Insolvency Resolution Process (CIRP).
Background and Insolvency Proceedings
VIPL, which was earlier part of Anil Ambani’s Reliance Power, entered insolvency under the Insolvency and Bankruptcy Code (IBC). Reliance Power had officially announced in 2023 that VIPL was no longer its subsidiary. The insolvency process was overseen by interim resolution professional Bimal Kumar Agarwal, who was responsible for managing assets and evaluating bids for resolution.
Strategic Boost for Adani Power
The acquisition of VIPL marks another strategic expansion for Adani Power in the thermal power sector. The successful acquisition not only adds 600 MW of capacity to its portfolio but also highlights the group’s continued interest in distressed assets with revival potential.
