Vedanta Ltd, owned by billionaire Anil Agarwal, will pay Rs 1,440 crore for debt-ridden power plant Meenakshi Energy, the firm said in an exchange filing on January 18 after emerging as the victorious bidder.

Meenakshi Energy is a 1,000-MW coal-fired power station in the Andhra Pradesh town of Nellore. It was admitted to the insolvency resolution process, and the procedures began on November 7, 2019.

“Vedanta currently envisages to operate 1000 MW of Meenakshi Energy Limited as IPP to cater to the needs of the market by entering into short or medium-term PPA and by supplying power to merchants. The acquisition shall enhance the Group’s portfolio in power,” said the company.

In its filing, Vedanta said, “Balance INR 1,128 Cr in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy Limited to the Financial Creditors to be repaid in 5 equal installments over a period of 5 years starting from the end of 2nd year.”

However, Vedanta has stated that the National Company Law Tribunal (NCLT) permission is still pending.

On August 21, 1996, Meenakshi Energy Limited was formed. The Plant is divided into two stages. Phase I is finished, and Phase II is in the works. Its commercial launch date has yet to be announced.

Meanwhile, Vedanta Ltd shares closed 2.08 per cent higher on the BSE on January 18 at Rs 324.10. The previous session saw the stock settle at Rs 317.5.

The stock’s 52-week high was Rs 440.75, and its 52-week low was Rs 206.1.