Adani Power Acquires Vidarbha Industries, Boosting Capacity to 18,150 MW
Adani Power Ltd. has completed its acquisition of Vidarbha Industries Power Ltd. (VIPL), which operates a 600 MW coal-fired plant in Maharashtra. The acquisition, part of a corporate insolvency resolution process, increases Adani Power's total operating capacity to 18,150 MW. The company stated the move is a key step in its strategy to turn around stressed assets and support India's energy needs, with a goal of reaching over 30,000 MW in operational capacity by 2030.
Unpacked:
Acquiring stressed assets such as VIPL allows Adani Power to expand its capacity and market presence at potentially lower costs, as these assets are typically sold at discounted prices through insolvency processes. This strategy helps the company quickly scale operations and support India's growing energy demand, while also aiming to turn around underperforming plants.
Environmental concerns include increased air and water pollution from coal trucking, improper disposal of fly ash (a toxic by-product), deforestation along transport routes, and risks to local wildlife. Community opposition has been noted, and although Adani Power has pledged to address these issues, compliance and effectiveness remain in question.
India is balancing rapid growth in energy demand with the need for reliable power. While the government is pushing for more renewables, coal remains a major energy source due to its reliability and established infrastructure. Acquisitions like this help maintain grid stability and energy supply during the transition to cleaner sources.
Local communities have expressed concerns about pollution, health risks, increased traffic, and environmental degradation linked to coal transport and plant operations. There have been reports of community opposition to expansions, citing inadequate environmental safeguards and negative impacts on agriculture and wildlife.