Jindal Power Ltd (JPL) is seeking to compete with Reliance Industries, Adani Power and a Power Finance Corp-led consortium to acquire Lanco Amarkantak Power with the Naveen Jindal-promoted company expressing its interest in bidding for the distressed power producer.
JPL has filed a petition with the Amaravati bench of the National Company Law Tribunal (NCLT) for approval to join the auction process of Lanco Amarkantak Power, said people with knowledge of the matter.
At a hearing on Friday, the NCLT permitted JPL to submit a resolution plan along with a Rs 100 crore bank guarantee. The tribunal will hear JPL’s plea again on Wednesday.
JPL did not respond to ET’s request for comments.
The development comes soon after the tribunal allowed lenders to hold a fresh auction following Adani Power’s belated offer after lenders concluded voting for company.
If the tribunal allows Jindal to join the auction, it will be the second instance wherein Adani Power will clash with JPL for acquiring a distressed thermal power company.
Both companies participated in the Coastal Energen auction process that lasted two days and involved intense bidding. Adani Power emerged as the winning bidder, offering Rs 3,440 crore, as reported by ET on October 23.
In the case of Lanco Amarkantak, the lenders sought special approval from the tribunal to hold a fresh auction. This is because in January, nearly 95% of the lenders voted for a resolution plan by a consortium led by PFC that is also pending before the tribunal for approval. PFC had offered Rs 3,020 crore plan to the lenders.
Subsequently, Adani Power gave an unsolicited improved offer of Rs 3,650 crore, as reported by ET on November 2. It later improved the offer to Rs 4,100 crore, as reported by ET on December 13.
Adani’s revised offer was 36% higher than PFC-led consortium’s plan.
Last week, following a plea from lenders, the tribunal allowed the resolution professional to hold a fresh auction among the three original bidders- Reliance Industries, Adani Power and Power Finance Corporation (PFC) led consortium.
On Friday, JPL petitioned that since lenders are holding a fresh auction, it should also be allowed to participate in the bidding process. JPL argued that competition will improve recovery for lenders, which is the stated objective of the Insolvency and Bankruptcy Code (IBC).
Lanco Amarkantak’s first phase, which is fully operational, has two units of 300 MW each, while the second phase is under construction and comprises two units of 600 MW each. It has Rs 1,800 crore cash in the company solely on account of operations from the first phase.
KPMG-backed RP Saurabh Kumar has admitted Rs 14,632 crore of claims from 17 lenders.
