Lenders to the Chhattisgarh-based distressed electricity producer SKS Power Generation have extended the deadline for due diligence by prospective buyers to October 17 because of the high demand for the plant.
The deadline to complete due diligence was supposed to end September 12 but has been extended as bidders needed more time to thoroughly analyse the plant, people familiar with the developments said.
Large Indian conglomerates including Reliance Industries, Adani Power and the state-run NTPC are among the nearly two-dozen bidders interested in buying the bankrupt plant. NTPC, which is currently operating a 300 MW unit, has restarted the second 300 MW unit, potentially boosting the plant’s valuation.
Bankers expect the value for the plant to go up with both units functioning as SKS will be a rare operational plant available for acquisition in the country. “The second unit is now lighted which is a milestone because a fully functional power plant is more attractive to buyers and lenders can expect a better price,” said a person familiar with the plan.
NTPC is running SKS Power for a fee on special government directives aimed at overcoming power shortages.
Process advisor BoB Capital Markets and resolution professional Ashish Rathi did not reply to an email seeking comment.
The plant has 25 years of fuel agreement with South Eastern Coalfields, a Coal India arm with a railway line directly transporting coal to the plant. It also has power purchase pacts with Rajasthan, Bihar and Chhattisgarh.
SKS Power Generation is undergoing a corporate insolvency and resolution process (CIRP) since April 2022 and owes two lenders led by Bank of Baroda (BoB) a total of ₹1,890 crore. BoB has the lion’s share of the debt with ₹1,740 crore of secured loans while State Bank of India is the other creditor with ₹150 crore of dues.
