Ahmedabad, Nov 25 (IANS): Adani Power Monday said it has entered into a binding agreement with the Avantha Group to purchase its 600 MW Korba West unit in Chhattisgarh for over Rs.4,200 crore.

Korba West Power owns the 600 MW thermal power plant at Raigarh in the state, where an expansion project is underway.

The deal makes Adani Power the largest private sector power utility in the country with an installed capacity of 11,040 MW, it said in a stock exchange filing.

The acquisition follows its purchase in August of the 1,200 MW coal-based Udupi plant from Lanco Infra for Rs.6,000 crore.

The Gautam Thapar-led Avantha Group confirmed in a statement that the deal is valued over Rs.4,200 crore. With the Korba buy, the installed capacity of Adani Power will increase to 11,040 MW.

Commenting on the deal, Adani Group chairman Gautam Adani said: "This is the time for consolidation in the power sector. This acquisition consolidates our pan-India presence and further reaffirms our belief in the reforms processes underway in the power and coal mining sectors."

"This Korba acquisition expands our footprint particularly in the coal mining belt and we are bullish of expanding our presence further. We are committed towards achieving our target of 20,000 MW by 2020," he added.

Adani Power had operational capacity, before this buy, of 9,240 MW, comprising 4,620 MW at Mundra in Gujarat, 3,300 MW at Tiroda in Maharashtra and 1,320 MW at Kawai in Rajasthan. It also has a 660 MW plant ready for commissioning at Tiroda in Maharashtra.

Adani Power stock closed Monday at Rs.46.55 a share, 1.20 points, or 2.65 percent, higher than its previous close on the BSE.