Board of Approval for SEZ defers Adani’s slump sale of unit to arm

This is because the proposed deal was being done without transfer of debt, the board noted.

By: ENS Economic Bureau | Mumbai | Published: July 12, 2017 12:56 am
Adani power Photo for representational purpose

The Board of Approval (BoA) for Special Economic Zone in the commerce ministry has deferred Adani Power’s slump sale of the 4,600-MW Mundra plant in Gujarat to its subsidiary on the ground that the company first needs to provide the lenders’ approval for such a sale. This is because the proposed deal was being done without transfer of debt, the board noted. The minutes of BoA meeting noted: “The board has decided to defer the proposal and directed DC Adani Ports and SEZ to ascertain whether no-objection of lenders had been taken, as it has been noted the proposed transfer of the Adani Power plant in APSEZ to its subsidiary was being done without transfer of liability of debt.”

An Adani Power spokesperson said: “The Adani Power board has approved the demerger of the Mundra Power 4,620 MW undertaking to a subsidiary of the Adani Power with associated assets and liabilities, including bank loans, and is also subject to necessary approval and consent of stock exchanges, lenders, shareholders and NCLT, etc. The BoA for SEZ has deferred the decision with a query. In its meeting held on July 3, it has decided to defer the proposal of approving the demerger until no-objection certificate is received from the banks. We have approached the lenders and once an approval is granted we will take the process forward as required. The NOC from the banks would be taken through a meeting conveyed as per the directions of NCLT.”

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