The facility is located in the Indian state of Madhya Pradesh.

Economic Times quoted two people familiar with the development as saying that Adani Power received the power plant sale proposal from Avantha Power.

One of the sources said: "Avantha is keen to close the deal soon and given their relation with the Adanis after the sale of the first project, they have now initiated talks to sell the second projects. But it is still early days."

Adani Group has already purchased Avantha’s 600MW Korba Power as well as 1,200MW Udupi Power projects from Lanco Infratech, as part of its plan to boost its power generation portfolio.

Adani Group, meanwhile, is also considering acquisition of Essar Power Transmission from Essar Group for approximatelyINR18bn ($280m).

The Essar Power Transmission sale is a part of Essar’s effort to reduce its potential debt of more than INR800bn ($12.4bn).

Subject to various approvals, the deal is projected to be completed by September-December of this year.