JSW Energy tops rivals Adani, NTPC as highest bidder for KSK Mahanadi

Bid propels RE firm to the forefront of power generation in Chhattisgarh

JSW Energy, part of the billionaire Sajjan Jindal-led group, has emerged as the highest bidder for bankrupt KSK Mahanadi Power Company, according to a stock-exchange filing by the company on Tuesday. This successful bid places JSW Energy ahead of major rivals, including the Adani group and NTPC.

 

The company said it had submitted its resolution plan under the corporate insolvency resolution process for the Chhattisgarh-based electricity generation firm, KSK Mahanadi. Following a challenge round conducted by the appointed resolution professional (RP), JSW’s financial proposal was recognised as the top offer.

 

JSW added a revised resolution plan incorporating the financial bid would now be submitted to the RP and the committee of creditors (CoC) of KSK Mahanadi Power Company for voting and final approval. According to a banking source, since the competing offers are relatively close in value, the final acquisition would be decided by the CoC’s voting outcome.

 

 

The Adani group initially led the bidding with an offer of Rs 27,000 crore. However, in a subsequent challenge round, JSW Energy outbid Adani to claim the top spot.

 

KSK Mahanadi operates a 3,600 megawatt (Mw) coal-fired power plant in Chhattisgarh, with three operational units (600 Mw each), while other units remain under construction. Entering debt resolution in 2020 after defaulting on payments, the company faces claims of Rs 29,330 crore from lenders.

 

Several banks, including the State Bank of India, have transferred loans to asset reconstruction companies to recover dues. KSK Mahanadi’s financial strain stemmed from inadequate coal supply, despite holding power-purchase agreements with Andhra Pradesh, Tamil Nadu, and Uttar Pradesh.

 

The company’s allocated coal blocks were cancelled in 2014 after a Supreme Court ruling, and although it later obtained coal linkages under the power ministry’s “Shakti” scheme, it had to rely on coal imports due to persistent shortages.