9APRIL 2024TOP STORIESCCI GREEN LIGHTS ADANI'S AQUISITION OF LANCO AMARKANTAK POWERIOC TO CONSTRUCT A 9M TONNE CAPACITY OIL REFINERY IN CHENNAIThe Competition Commission of India (CCI) has granted approval to Adani Power's acquisition of Lanco Amarkantak Power, according to an order issued by the antitrust regulator.Adani Power intends to acquire a 100percent stake and take control of the bankrupt Lanco Amarkantak Power following a corporate insolvency resolution process (CIRP), as stated by the CCI. Last month, reports indicated that Adani Power emerged as the winning bidder for the financially troubled firm, with a bid of Rs 4,101 crore.The CCI's assessment concluded that the proposed transaction would not have a significant adverse impact on competition in any plausible relevant market in India. Therefore, the definition of the relevant market remains open, according to the CCI's statement.The acquisition of Lanco Amarkantak, which operates two units of 300 megawatts of thermal power each in Chhattisgarh, will contribute to the expansion of Adani Power's capacity. This marks Adani Power's second acquisition of assets through the Insolvency and Bankruptcy Code (IBC) route in the current fiscal year, following its acquisition of Coastal Energen along with Dickey Alternative Investment Trust. Reports suggest that the winning bid for Coastal Energen amounted to approximately Rs 3,450 crore.Adani Power, a significant player in the thermal power sector, operates plants across various states in India, including Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Jharkhand, and Madhya Pradesh. State-owned Indian Oil Corporation (IOC) announced on Thursday its decision to increase its stake in the joint venture responsible for constructing a 9 million tonnes refinery in Chennai to 75percent. This decision comes after the project's cost escalated by over 12per cent. Initially, IOC and its subsidiary Chennai Petroleum Corporation (CPCL) were slated to hold a 25percent stake in the joint venture, with the remaining 50 percent equity coming from financial investors.In a filing with the stock exchange, IOC stated that its board, during a meeting on Thursday, "approved the revision in the project cost from Rs 29,361 crore to Rs 33,023 crore." Additionally, the board approved a change in the capital structure of the joint venture, with IOC holding 75 per cent equity and CPCL holding 25percent.The reasons for the cost escalation were not provided by the company.IOC's board had previously approved the implementation of a 9 million tonnes per year refinery at Cauvery Basin, Nagapattinam in Tamil Nadu, by CPCL on January 29, 2021. This refinery aimed to address the demand for petroleum products in southern India. Approval was also granted for the formation of a joint venture between IOC and CPCL, with an equity holding of 50percent each, alongside the involvement of financial/strategic/public investors. Consequently, the joint venture company named 'Cauvery Basin Refinery and Petrochemicals (CBRPL) was incorporated on January 6, 2023.
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