Reliance Industries, Adani Power, Torrent Power, Vedanta and Jindal Power are among 14 companies that have shown interest in acquiring Gujarat-based Bhadreshwar Vidyut, which is undergoing insolvency, said people aware of the development.
This is the third bankrupt power producer for which two of the country’s largest corporate houses – Reliance Industries and the Adani Group – have shown interest. They had earlier offered resolution plans for SKS Power and Lanco Amarkantak Power, but both conglomerates did not aggressively pursue the bids, one of the persons cited above said.
Resolutions of both SKS Power and Lanco Amarkantak are yet to be concluded. Both Reliance and the Adani Group had also submitted expressions of interest for Future Retail, which was admitted for insolvency last year.
Reliance Industries, Adani Power, Torrent Power, Vedanta, and Jindal Power did not respond to ET’s request for comment.
Other applicants for Bhadreshwar Vidyut include Sherisha Technologies, which recently acquired a 22.7% stake in Anil Jain’s Refex Industries.
Resolution professional Hitesh Goel, backed by Alvarez and Marsal, admitted ₹3,463 crore in claims, which include ₹2,936 crore of financial creditors’ claims. He did not respond to ET’s request for comment.
J P Iscon, Kandla Agro and Chemicals and Kutch Chemicals Industries also submitted initial bids, the people said.
Prudent Asset Reconstruction Co’s RKG Fund, UAE-based Global vs Commodity Services (FZE) and an individual, M K Rajagopalan, also showed interest. Progressive Star Finance, in partnership with BVPL Employees Benefit Trust, and Sanjana Cryogenic Storages, in partnership with Sterling Power Ventures, also responded to expressions of interest (EoI).
Bhadreshwar Vidyut, formerly known as OPGS Power Gujarat, is a special-purpose vehicle promoted by the OPG group. It has two coal-based power plants of 150 MW each in Kutch, Gujarat.
The first unit was completed in February 2015, and the second unit in February 2016.
“The total cost incurred for the project is ₹2,026 crore equating to ₹6.75 crore per megawatt, which was funded through ₹1,497 crore of debt and ₹529 crore of equity,” Icra Ratings said in a report.
Bhadreshwar Vidyut was admitted in October last year following a petition filed by the State Bank of India. The company’s loan was classified as non-performing in December 2020. Thereafter, the power producer proposed a debt restructuring plan of ₹850 crore for a total debt of ₹1,775 crore. But most lenders rejected the debt recast plans as they failed to address lenders’ concerns, said an order of the National Company Law Tribunal (NCLT).
