MEIL'S Power Grab: Buys 250 MW TN Plant for Rs 926 Cr

Hyderabad-based Megha Engineering & Infrastructures Limited (MEIL) has fully acquired the 250 MW lignite-fired Taqa Neyveli Power Company in Tamil Nadu for approximately Rs 926 crore (387 million dirhams) from Abu Dhabi National Energy Company. The deal, announced on Thursday, transfers 100 percent equity in the operational power unit to MEIL Energy, a dedicated subsidiary, marking a strategic leap from MEIL’s traditional engineering, procurement, and construction (EPC) dominance to becoming a full-fledged developer, owner, and operator of critical energy infrastructure.

The Neyveli-based plant, located in the heart of Tamil Nadu’s industrial lignite belt, boasts a proven track record of reliable power generation with a long-term power purchase agreement (PPA) locked in with the state’s distribution utility, TANGEDCO. Operational since its commissioning, the facility harnesses locally abundant lignite reserves to deliver consistent baseload power, playing a vital role in meeting southern Tamil Nadu’s escalating electricity demand amid rapid industrialization and urbanization. The acquisition ensures MEIL immediate revenue visibility while integrating a high-uptime asset into its growing portfolio of over 5.2 GW across thermal, renewable, and transmission segments.

Salil Kumar Mishra, MEIL Group’s Chief Financial Officer, described the deal as a cornerstone in the company’s long-term vision. “This acquisition allows us to own and operate premium energy infrastructure while complementing our EPC expertise with stable, cash-generating assets,” he stated. The move aligns with MEIL’s broader strategy of inorganic expansion, following recent forays into solar, hydro, and gas-based projects. By securing a fuel-agnostic, PPA-backed thermal unit, MEIL not only diversifies its energy mix but also fortifies its foothold in Tamil Nadu—a state projected to see power demand surge by 7–8 percent annually through 2030.

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The transaction, though undisclosed officially in quantum, was confirmed through industry sources at Rs 926 crore, reflecting a competitive valuation for a fully operational plant with secured offtake and minimal residual technical risk. The deal underscores global investor confidence in India’s power sector fundamentals, even as international players like TAQA restructure portfolios amid energy transition pressures. For MEIL, the acquisition accelerates its evolution from a Rs 50,000-crore infrastructure conglomerate into a balanced energy major with end-to-end value chain control—from project execution to power dispatch.

With this addition, MEIL now commands a formidable presence across India’s energy landscape, spanning irrigation mega-projects, oil and gas pipelines, renewable parks, and now legacy thermal assets. The Neyveli unit strengthens its southern India cluster, enabling operational synergies with nearby lignite mines and transmission corridors. As India targets 500 GW of non-fossil capacity by 2030 while sustaining thermal reliability, MEIL’s dual-track strategy—owning stable conventional assets while scaling renewables—positions it as a resilient player in a dynamically evolving power market.

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