SKS Power Generation’s lenders have received seven bids to take over the distressed power producer, people familiar with the matter said, setting the stage for a clash between Reliance Industries and the Adani Group.
The Chhattisgarh-based power company owes Rs 1,890 crore to two lenders, Bank of Baroda and State Bank of India. “We have received bids and they are being evaluated. The financial parameters of the bids will now be discussed, and lenders may also seek more details from bidders before selecting the preferred one,” one person who is aware of the process said.
Reliance Industries, the Adani Group, state-owned NTPC, Torrent Power, Jindal Power, Sarda Energy & Minerals and Singapore-based Vantage Point Asset Management have submitted final bids to take over the distressed company, the person added. The last date for submission of bids was December 30.
The 600-megawatt (MW) coalbased plant, in working condition, had invoked interest from 23 entities. Lenders had extended the deadline to submit final bids four times after some bidders sought more time.
State-owned NTPC said it required an extension to get approval from both its board as well as the government. SKS’ corporate insolvency and resolution process was initiated in April.
At present, NTPC is running the power generators’ two units of 300 MW each for a fee, following a government directive aimed at overcoming power shortages.
The plant had stopped production early in 2022 after Hong Kong-listed owner Agritrade Resources failed to operate it due to financial difficulties of its own. Agritrade had bought the plant in 2019 following a one-time settlement with a group of lenders led by State Bank of India.
The plant has a 25-year of fuel supply agreement with South Eastern Coalfields, a Coal India unit, with a railway line directly transporting coal to the plant.
Source: Economic Times