SBI-led consortium of lenders to sell stake in debt-ridden Coastal Energen

The thermal power plant was one of the projects for which the state government signed an MoU in September 2015, claiming an investment of Rs 156.20 billion, during the Global Investors Meet

State Bank of India-led group of lenders have initiated the process to put troubled thermal power company Coastal Energen on sale.

The company had a 1,200 Mw coal-based thermal power plant in Thoothukudi, Tamil Nadu. It had debt of over Rs 60 billion as of December 30, 2016. Lenders have asked SBI Capital Markets to identify an investor to acquire the firm in accordance with the Reserve Bank of India (RBI) circular.

Coastal Energen is part of Coal and Oil Group. Lenders had initiated restructuring under Strategic Debt Restructuring (SDR) on 2015.

The consortium of banks had earlier converted part