Adani Power gets LOI for GVK Energy acquisition as ESG scores improve
Adani Power said creditors approved its resolution plan for GVK Energy, leading to a letter of intent for the 330 MW hydro asset. The transaction remains subject to NCLT Hyderabad and other regulatory approvals. The company also reported higher ESG scores across multiple rating frameworks.
What happened
Adani Power improved its NSE Sustainability ESG score to 66 and received an LOI after creditors approved its resolution plan for GVK Energy. The proposed
Key facts
- NSE Sustainability ESG score: 66, versus 65 in FY26
- S&P Global CSA score: 71/100
- FTSE Russell ESG rating: 4.3/5.0
- CareEdge ESG score: 80/100
- CareEdge score is 35% above industry median
- GVK Energy hydroelectric plant capacity: 330 MW
- LOI received: September 7, 2026
Why this matters
Creditor approval and the LOI advance Adani Power’s distressed-asset expansion strategy, with regulatory clearance now the key execution milestone.
What to watch
- NCLT Hyderabad order approving or delaying the resolution plan.
- Disclosure of acquisition consideration, assumed liabilities, required capex, and expected closing date.
- Regulatory approvals related to hydro operations, water use, grid connectivity, and ownership transfer.
- Updated ESG scores and methodology commentary from major rating providers.
- Management guidance on hydro generation, EBITDA contribution, financing structure, and integration costs.
- Monsoon and reservoir conditions affecting expected hydro availability after acquisition.
- Pursue NCLT Hyderabad approval and complete remaining regulatory, creditor, and asset-transfer conditions.
- Conduct detailed technical, hydrology, capex, contract, and liability diligence before final completion.
- Position the hydro asset within a broader low-carbon generation and ESG-improvement narrative for lenders, investors, and large electricity buyers.
- Evaluate refinancing or sustainability-linked funding options if improved ESG ratings reduce financing spreads.
- Seek long-duration power-purchase or merchant-market optimization opportunities for the hydro output, particularly for peak-demand balancing.