Lanco Amarkantak Thermal Power Project

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Lanco Amarkantak Thermal Power Project is an operating power station of at least 600-megawatts (MW) in Pathadi, Korba, Chhattisgarh, India with multiple units, some of which are not currently operating.

Location

Table 1: Project-level location details

Plant name	Location	Coordinates (WGS 84)
Lanco Amarkantak Thermal Power Project	Pathadi, Korba, Korba, Chhattisgarh, India	22.2454, 82.7246 (exact)

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

• Unit 1, Unit 2: 22.2454, 82.7246
• Unit 3, Unit 4: 22.2420932, 82.7247334

Project Details

Table 2: Unit-level details

Unit name	Status	Fuel(s)	Capacity (MW)	Technology	Start year
Unit 1	operating	coal: bituminous	300	subcritical	2009
Unit 2	operating	coal: bituminous	300	subcritical	2010
Unit 3	cancelled	coal: bituminous	660	subcritical	–
Unit 4	cancelled	coal: bituminous	660	subcritical	–

Table 3: Unit-level ownership and operator details

Unit name	Owner	Parent
Unit 1	Lanco Amarkantak Power Ltd [100%]	Lanco Amarkantak Power Ltd [100.0%]
Unit 2	Lanco Amarkantak Power Ltd [100%]	Lanco Amarkantak Power Ltd [100.0%]
Unit 3	Lanco Amarkantak Power Ltd [100%]	Lanco Amarkantak Power Ltd [100.0%]
Unit 4	Lanco Amarkantak Power Ltd [100%]	Lanco Amarkantak Power Ltd [100.0%]

Background

Stage I of the plant, which is owned by Lanco, comprises two 300 megawatt generating units commissioned in 2009 and 2010.

Lanco sought and gained part funding for the project from the International Finance Corporation.

Proposed expansion

In 2015, two additional units of 660 each were under construction, bringing the power station's proposed final capacity to 1,920 MW.

The India government projected the new units would be commissioned in 2017-2018.

The June 2023 Broad Status report predicted that the expansion project would be revived in FY 2025-2026.

Corporate insolvency and Adani Acquisition

According to the Broad Status Report as of October 2016, "Presently no work is going at the site due to financial problems." The report also noted that land acquisition of land for water system was delayed, and that the schedule of implementation would be reassessed once work resumed.

In September 2019, the National Company Law Tribunal (NCLT) allowed Axis Bank to start bankruptcy proceedings against Lanco Amarkantak Power after it defaulted on loans. The company owed banks almost Rs 12,000 crore. Attempts to resolve the default under previous schemes such as corporate debt restructuring failed. The tribunal had ordered liquidation of Lanco group parent, Lanco Infratech, last year after banks failed to agree on a resolution plan for the company during its insolvency proceedings. The parent company alone owed banks in excess of Rs 45,000 crore.

In 2021, government documents noted the following about the project: "Admitted to NCLT on 05.09.2019; Resolution Plan being considered."

In December 2021, lenders selected Vedanta's offer of ₹2,800 crore for a financially-stressed Lanco power unit, to put to a vote after its offer was declared higher than that of rival bidder iLabs Group. Vedanta and iLabs Group were the only two bidders.

However, in January 2022, lenders rejected Vedanta's offer for Lanco. Lenders were reportedly evaluating options including inviting fresh bids. They felt the valuation offered by Vedanta was low considering the company owned other plants.

Lanco Amarkantak Power Ltd's Corporate Insolvency Resolution Process website detailed the status of units 3 & 4.

In February and March 2022, it was reported that Reliance Industries was planning to make a foray into coal-based power generation by submitting an application to acquire bankrupt Lanco’s Amarkantak unit. RIL had earlier made an announcement to get into the renewable power generation business by investing $10 billion in three years but its bid for a coal-based power plant was considered as deviation from its green energy policy.

In November 2022, it was reported that Reliance Industries Ltd. (RIL) and Adani Enterprises were set to compete for an auction to purchase Lanco Amarkantak Power. According to a report in the Economic Times, the Reliance vs Adani competition for Lanco unit auction was possibly the first time that the country’s biggest corporate houses would pit against each other for an asset. A consortium of Power Finance Corp. (PFC) and REC Ltd. would also be part of the auction.

In December, it was reported that if the deal went ahead, SJVN Ltd could be the majority shareholder in Lanco Amarkantak with 40%, while DVC could own a 10% stake, and PFC and REC could continue to hold 25% each.

However, in December 2022, a voting deadline was also extended until January 2023 amid a legal battle among creditors over the distribution of proceeds.

In January 2023, the PFC-REC team received 95% of lender votes by value of debt, while Adani Power secured 17%. Reliance Industries, the third bidder in the fray, did not receive any votes. (The voting percentages need not total up to 100 as lenders could vote for one offer, an alternative, or all of the options on the table.) The National Company Law Tribunal (NCLT) was expected to hear minority lenders’ appeal on January 18. Even as lenders had voted on the plans, the resolution of the company would conclude only after the tribunal decided on distribution of proceeds.

In April 2023, the Economic Times reported that PFC-REC had offered ₹3,020 crore for Lanco Amarkantak Power after a Swiss challenge mechanism was introduced in the bidding process that had attracted both Reliance Industries and the Adani Group. According to sources, PFC and REC bid for Lanco Amarkantak Power because they have given large loans to the power company and felt that the value offered by bidders was not adequate. After being declared the winning bidder, they approached the department of investment and public asset management (DIPAM) for approval to acquire the company through the JV entity. DIPAM questioned the transaction structure: it was "not in-principle opposed to the acquisition of stressed power projects by the PFC-REC combine" but had "reservations about this being done through a separate company that would require fresh capital to be allocated for a defined purpose."

Following this development, the June 2023 and the November 2023 Broad Status reports stated that the project's Units 3 and 4 were expected to be revived by FY 2025-2026.

In January 2024 it was reported that Jindal Power proposed to top Adani's bid who was the highest bid until then. Adani offered 41 billion rupees ($494 million) in December 2023, just as the insolvency court prepared to give final clearance to PFC and REC. In February 2024, Adani was reportedly declared the winning bidder after offering 41.01 billion rupees for the Lanco Amarkantak power station.

In March 2024, Lanco Amarkantak's Committee of Creditors (COC) approved the resolution plan proposed by Adani Power Ltd. Later in the same month, the Competition Commission of India (CCI) approved the takeover of Lanco Amarkantak Power Limited by Adani. As of June 2024, Adani's resolution plan to fully acquire Lanco Amarkantak was pending approval by the NCLT.

In August 2024, the NCLT approved Adani’s purchase of Lanco Amarkantak Power. Adani reportedly expected to complete the acquisition in October 2024.

Opposition

The Forest Peoples Programme review on the Lanco Amarkantrak power plant revealed that since 2008, there was no evidence of “genuine broad community support for the project.” Protests and petitions occurred against the LAPPL over employment provisions.

In October 2011, protests from the local villagers occurred against the Lanco Amarkantak power plant because they believe the company in charge, LAPPL, has shown indifference to environmental concerns. A hearing over the power plant was cancelled as a result of these protests. LAPPL has refuted these claims, stating that it was defamation.

In January 7, 2012, violent protests erupted at the public hearing held for the expansion of the Lanco Amarkantak power plant by the Lanco Amarkantak Power Private Limited (LAPPL) company in the town of Korba. The protestors had pelted stones and tried to get into the hearing. The police prevented them and dispersed villagers with lathi-charge and lobbed tear gas shells.

Financing

Source of financing: China Development Bank

China Development Bank gave US$200 million Buyers’ Credit for units 3 & 4 (1320 MW) of Lanco Amarkantak Thermal Power Project, the 1320 MW Babandh power station, and the 1320 MW Vidarbha thermal power station being developed by Lanco Group.

Stages

Stage I:

• Unit 1 - 300 MW - 2009
• Unit 2 - 300 MW - 2010

Stage II:

• Unit 3 - 660 MW
• Unit 4 - 660 MW

Contact details

Village-Pathadi, P.O-Tilkeja,
Korba 495 674 Chhattisgarh, India
Phone No. +91-7759-279 938/ 915

Articles and Resources

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.