Adani Power on Thursday said the agreement to acquire a 49 per cent stake in Odisha Power Generation Corporation (OPGC) from the affiliates of the AES Corporation, is formally cancelled now. The Odisha government, which holds a 51 per cent stake in OPGC, had exercised the right of first refusal (RoFR) to purchase the 49 per cent stake held by AES.

In June this year, Adani Power announced it had signed a share sale and purchase agreement to acquire from AES OPGC Holding and AES India Pvt Ltd (collectively referred as sellers) a total of 89,30,237 equity shares held in OPGC representing 49 per cent of the total issued, paid-up and subscribed equity share capital.

OPGC operates a 1,740MW thermal power plant at Banharpalli in Jharsuguda district, Odisha. This plant is the mainstay of Odisha for base load power supply and among the lowest cost power generators in the state. The plant has a long-term power purchase agreement valid for 25 years with the state-owned off taker GRIDCO and sources fuel from a nearby captive mine.