 "Adani Power emerges top bidder for stressed KSK Mahanadi proj at Rs 27K-cr")
Adani Power has emerged as the highest bidder for the stressed 1,800 megawatt (MW) KSK Mahanadi thermal project in Chhattisgarh, with an offer of Rs 27,000 crore, The Economic Times reported on Saturday. The Adani offer already ensures a 92 per cent recovery for the lenders.
KSK Mahanadi is currently undergoing insolvency proceedings at the National Company Law Tribunal (NCLT).
The ET report said that 10 financial bids were received for the thermal power company by Thursday evening. Coal India, NTPC, Vedanta, JSW Energy, Capri Global Holdings were among the other bidders.
KSK Mahanadi thermal project's troubles explained
Business Standard had earlier explained that the company’s troubles began after it defaulted on bank loans worth Rs 20,000 crore in 2018. The lead lender for the project was Power Finance Corporation Limited, a state-owned non-banking financial corporation. After the default, lenders began debt restructuring, which involved sale of assets.
Adani Power was one of the bidders for the project, but it withdrew in 2019. In 2020, the company was submitted to the NCLT under the Insolvency and Bankruptcy Code (IBC).
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As India faced a significant surge in power demand due to unprecedented heatwave conditions this summer, the Centre is eyeing a quick turnaround of such stressed plants to boost power supply as it scouts for more electricity sources.
The project was running and had power purchase agreements with Andhra Pradesh, Tamil Nadu, and Uttar Pradesh. However, it defaulted because of a shortage of coal supply.
Earlier, the State Bank of India, one of the largest lenders to the project, tried to resolve it through its SAMADHAN scheme, but the attempt failed.