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A Megha Engineering and Infrastructures (MEIL) unit has acquired a 100% stake in TAQA Neyveli Power from Abu Dhabi National Energy Company PJSC for Rs. 926 crore, investment banking sources told ET.The acquisition by MEIL Energy, a wholly owned subsidiary of MEIL, underscores the transition of the group from an engineering, procurement and construction (EPC) conglomerate to a developer, owner and operator of core infrastructure assets, the company said in an official release that did not divulge financial details.TAQA Neyveli owns and operates a 250 megawatt lignite-fired power plant located in Neyveli, Tamil Nadu. The power plant has a long-term power offtake commitment with the state discom.MEIL, which has more than 5.2 gigawatt of energy generation assets in its portfolio, aims to strengthen its position across the energy value chain by building a resilient portfolio of operating assets that deliver reliable services at scale, as per the release.“This acquisition is a milestone in our journey to own and operate high-quality energy assets, and it advances our long-term strategy of complementing EPC excellence with the ownership of core infrastructure assets,” said Salil Kumar Mishra, MEIL’s group chief financial officer.Live EventsMEIL’s acquisition mirrors a growing trend of companies in the thermal power sector expanding capacities as India looks to meet base load power requirements which are more easily met by thermal power sources rather then renewable energy where supply tends to be lumpy or dependent on seasonal variations or time of day.Recently, Naveen Jindal owned Jindal Power purchased Jhajjar Power which was owned by Apraava Energy for Rs. 4,000 crore. Apraava Energy was formerly known as CLP India.Multiple thermal power generation plants that were under distress have changed hands in the past few years signalling continuous M&A activity in the sector. Notable amongst these are the acquisition of Essar Power MP and Lano Amarkantak Power by Adani Power and KSK Mahanadi Power by JSW Energy.More recently, a Kotak Fund has made a bid to acquire the debt and convertible stock of Jaiprakash Power Ventures Limited from its lenders.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onMegha EngineeringTAQA Neyveli PowerAbu Dhabi National Energy Companythermal power sectorJindal Power acquisitionenergy generation assetsNeyveli power plantM&A activitypower offtake commitmentrenewable energy (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onMegha EngineeringTAQA Neyveli PowerAbu Dhabi National Energy Companythermal power sectorJindal Power acquisitionenergy generation assetsNeyveli power plantM&A activitypower offtake commitmentrenewable energy(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
