Adani Power Secures NCLAT Approval for INR 4,000 Cr VIPL Deal

Adani Power scored a major legal win on Tuesday after the National Company Law Appellate Tribunal upheld its ₹4,000 crore resolution plan for Vidarbha Industries Power Ltd, clearing the last big hurdle in the long-running insolvency case.

The decision gives Adani Power a boost in the Indian power industry and a resolution to a long years old dispute.

NCLAT rejected the appeals, submitted by Western Coalfields Ltd and a group of employees of the Vidarbha Industries Power, and wrote that their protests were invalid under Insolvency and Bankruptcy Code. The tribunal decided that the resolution plan was passed in a way that the due process was exercised, and it did not infringe any of clause of the law.

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This verifies the previous grant by the National Company Law Tribunal that had cleared the bid of Adani Power to acquire the debt-laden company. Under the support of the appellate tribunal, Adani Power can now proceed with full control of VIPL without any more uncertainly of the court.

The Vidarbha industries power plant is a thermal power plant with a capacity of 600 MW in Butibori, Nagpur Maharashtra state. It is a stress caused by financial problems which have plagued the plant and the resolution plan will be very likely to make sure that operations are carried on and at the same time handle the claims of creditors.

The case ruling is also regarded as a significant indication to the insolvency system in India, and it strengthens trust among the lenders or investors with huge-ticket resolutions. In the case of Adani Power, the decision is positive in terms of its expansion plans and it is another operating asset to its growing portfolio as the company keeps increasing current capacity with the increasing demand of power.