Adani Power Acquires Vidarbha Industries in Major IBC Deal
The Insolvency and Bankruptcy Code (IBC) is a landmark development for the resolution of distressed assets and the revival of sick companies in India. The acquisition of Vidarbha Industries Power Ltd. (VIPL) by Adani Power Ltd. (APL) for ₹4,000 crore is just the latest example of the IBC at work, offering transparent, time-bound and value-maximising resolution to all creditors and stakeholders.
The Corporate Insolvency Resolution Process (CIRP): VIPL’s Journey into IBC
VIPL, a 2×300MW coal-based power plant located in Butibori, Nagpur, Maharashtra, was admitted into CIRP after it faced financial stress and failed to pay its debt. The CIRP has been launched to facilitate a time-bound process for the resolution of bids from prospective investors in line with the provisions of the Code, while permitting time to verify the information submitted by the bidder and informing other prospective investors.
NCLT Approval: The Pivotal Step in the Resolution
The end-point of the IBC process is the approval of the resolution plan by the National Company Law Tribunal (NCLT). The Mumbai Bench of the NCLT for VIPL approved Adani Power’s resolution plan on June 18, 2025, based on its viability and the ability of the plan to also protect the interests of creditors and other stakeholders. This consent cleared the way for the consummation of the mould of title and the carrying out of the scheme.
Implementation of the Resolution Plan: From Approval to Acquisition
After NCLT approval, Adani Power expeditiously consummated the resolution plan on 7th July 2025, acquiring 100% shareholding in VIPL for a total consideration of ₹4,000 crore. The acquisition was made on a debt-free basis, which is customary in the resolution of IBC, giving the asset owner a clean slate for revival and future operations.
Value Maximization and Stressed Asset Turnaround
One of the IBC's central aims is to ensure maximisation of value for creditors while ensuring the continuity of the enterprise, preserving parts of the viable assets of such an enterprise. Adani Power’s takeover of VIPL is a classic example of how IBC can be a tool to turn around stressed assets by bringing in strategic investors with deep pockets and expertise to quickly turn around the operations and revive the profitability. SB Khyalia, CEO of Adani Power, said recently:
“The acquisition of VIPL marks a significant development in Adani Power’s journey towards building a networked infrastructure business in India. As we further increase our portfolio, we are committed to helping India realize the vision of ‘Electricity for All' by providing dependable, affordable base-load power that will underpin the country’s sustainable, long-term growth.”
Impact on Power Sector and Adani Power’s Growth to Continue
The successful resolution and acquisition of VIPL under the IBC have significantly wider implications:
Operational Growth: With this completion, the total operating capacity of Adani Power now stands at 18,150 MW, strengthening its position as the largest private sector-based power producer and the biggest private thermal power producer in India.
Sectoral consolidation: The IBC has provided the opportunity for the consolidation of assets in the power sector, which in turn would lead to stronger players to revive and run under-performing plants more efficiently.
Future Growth: APL has a mix of brownfield and greenfield projects in the pipeline and it aims to clock 30,670 MW operational capacity by 2030, driven by the support of IBC through inorganic growth.
The IBC Benefit: Transparency, Speed and Protection of Interested Parties
The VIPL case demonstrates multiple virtues of the IBC:
Transparency: This is a court-supervised process, meaning all interested parties are required to be kept apprised of developments and have their interests taken into account.
Timeliness: The CIRP lays down timelines for each step, which will curtail indefinite delays as had happened in as quick approval and implementation of the VIPL resolution plan.
Creditor, Employee and Other Stakeholder Protection: creditors, employees and other stakeholders are given the opportunity to enjoy higher recoveries than traditional liquidation channels.
Conclusion: IBC – The Adrenaline Shot of Reviving Economy
The acquisition of VIPL by Adani Power under IBC is a quintessential example of how IBC has facilitated economic revival, sectoral consolidation and value maximisation for stakeholders in the process. Bringing in a vibrant regime for the resolution of near-bankrupt companies and to draw genuine buyers and investors has remained the hallmark of IBC which will continue to reshape India’s industrial and financial infrastructure.