 "SBI invites bids to sell NPA account KSK Mahanadi Power with Rs 4K cr dues")
SBI has invited bids from asset reconstruction companies, and other financial institutions to sell an NPA account KSK Mahanadi Power Company, with total outstanding against the company standing over Rs 4,100 crore.
"In terms of the bank's policy on sale of financial assets, in line with the regulatory guidelines, we place the account (KSK Mahanadi) for sale to ARCs/ Banks/ NBFCs/ FIs," SBI said in an auction notice.
The e-auction of KSK Mahanadi is scheduled to take place on December 31, 2021.
With fund based outstanding of Rs 3,815.04 crore and non-fund based outstanding of Rs 286.83 crore, company's total loan dues towards SBI stands at Rs 4,101.87 crore as on date, as per SBI.
The country's largest lender has set a reserve price of Rs 1,423.17 crore for selling this non-performing asset (NPA).
SBI said the interested parties can conduct their due diligence of this asset with immediate effect after submitting an expression of interest by December 6.
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A former subsidiary of KSK Energy Ventures, KSK Mahanadi had ceased to be its arm from May 2018, following invocation of pledged shares by a consortium of lenders upon default of loan repayment by the power company.
Back then, KSK Energy Ventures had said that KSK Mahanadi constituted over 80 per cent of the total power generation capacity of the group in the last 10 years (3,600 MW of the 4,472 MWs being operated/developed under the company and that lenders action would have adverse impact on the KSK Energy Ventures and its various stakeholders.
KSK Mahanadi Power Company is under the corporate insolvency resolution process.