Insolvency proceedings: SBI plans to send Jindal India Thermal to NCLT

State Bank of India (SBI) has taken 1,200-Mw Jindal India Thermal Power project in Odisha to the National Company Law Tribunal (NCLT) for insolvency proceedings as stake sale failed. 

The 180-day deadline to find a resolution also ended last week. The operational project, which landed in soup because of cancellation of coal block, has been operating at below optimum level. 

Jindal India Thermal Power owes Rs 57.7 billion to a consortium of 17 lenders, led by SBI that has an exposure of Rs 14 billion. Sources said SBI had decided to move a petition against the firm. 

The Bench is not yet disclosed, said the source. Jidal thermal power, however, could not be reached for comment. SBI in March also announced expression of interest for selling 51 per cent stake in the company to recover debt. However, the process did not illicit any major response.