New Delhi, April 20 (IANS): Lanco Infratech on Monday announced the successful closure of the sell-off of its Udupi power plant to Adani Power, making it the largest acquisition till date in India's thermal power sector.

The transaction was announced in August 2014, as part of Lanco's debt restructuring strategy.

Lanco has set up 2 X 600 MW fully imported coal-based power project in the Udupi district of Karnataka.

"The plant facility can be expanded as Udupi has already signed an agreement with the Karnataka government for further expansion of the capacity by 1,320 MW," Lanco said in a statement here.

"Following the completion of the transaction, Lanco Infratech has realised the enterprise value of around Rs.6,300 crore by reducing long-term debt and realising its equity value."

The deal helped Lanco to reduce its debt position - long-term and short-term debt now at Rs.4,275 crore and Rs.2,147 crore respectively - and boost cash flow," it added.

Lanco said the transaction will support the company in reducing its debt and infuse capital in other projects including Lanco Amarkantak Power.

The company has laid out a plan whereby it will look at more such strategic sell-offs to streamline its operations and strengthen the core of its business, the statement said.