The debt-ridden KSK Mahanadi project may soon undergo a fresh round of bidding as the National Company Law Tribunal (NCLT) has vacated a stay on the resolution plan proceedings and allowed issuance of fresh expression of interest.
The move will give a chance for a better valuation for the 1,800-MW project, which saw interest from the likes of Adani Power, Jindal Power and Vedanta Ltd in the first round of auctions, people close to the development said.
The NCLT had stayed the sale process for the project in June 2022 following a plea to consolidate the resolution of KSK Mahanadi and two of its ancillary companies, which are also under resolution process.
The tribunal removed the stay on April 5. The concern in the matter was to consolidate resolution of associated projects – KSK Mahanadi Water, which operates a water pipeline to the power plant, and raw material-carrying Raigarh Champa Rail.
After a delay, lenders recently agreed for KSK Mahanadi project to go standalone under the insolvency proceedings and moved a petition in the NCLT to remove the stay, said one of the persons, who did not wish to be identified.
“Now, the committee of creditors has decided for fresh bidding, so the project can go standalone,” the person said.
