Adani Power emerges top bidder for KSK Mahanadi with Rs 27k crore

Adani Power has emerged as the top bidder for the debt-ridden 1,800 MW KSK Mahanadi thermal power plant in Chhattisgarh with bid amount Rs 27,000 crore. If the resolution plan is approved by the lenders and subsequently by the NCLT, then the lenders would recover 92% of their outstanding loans.

The Chattisgarh-based coal-based power company owed Rs 32,248 crore to the creditors including Rs 29,400 crore to financial creditors.

The Adani Power bid includes Rs 12,500 crore in cash. A sum of Rs 9,000 crore would come from accumulated cash from the corporate debtor, while Rs 5,500 crore come from receivables.

Several other major companies, including Coal India, NTPC, Vedanta, JSW Energy, and Capri Global Holdings, had also expressed interest in acquiring the plant by submitting bids. As many as 25 companies had shown interest in bidding for the company but only 10 submitted their bids. Capri Global was the second highest bidder with Rs 25,000 crore bid while NTPC was the third highest bidder with Rs 22,500 crore bid.

KSK Mahanadi has been facing financial difficulties since 2018 when it defaulted on a massive Rs 20,000 crore loan. Due to these issues, the plant was placed under insolvency proceedings. Despite previous attempts to resolve the matter, including a debt restructuring plan, the situation could not be salvaged.

With India experiencing record-breaking heatwaves this year and facing a power shortage, the government is keen on reviving such stalled projects to boost electricity supply. The KSK Mahanadi plant, despite its problems, had previously supplied power to Andhra Pradesh, Tamil Nadu, and Uttar Pradesh. However, a coal shortage led to its downfall.

KSK Mahanadi Power Company Limited operates a Coal-based power project in the state of Chhattisgarh. This is a 3,600 MW power project comprising 6 units of 600 MW each. The entire 3,600 MW project is being implemented through a turnkey EPC contract, which was executed on 1st April 2009 with Shandong Electric Power Construction Corporation, China (SEPCO) with amendments executed thereto as required from time to time. Currently the company has 3 operational units and the rest of the units are under various stages of construction.

Also See: Lenders of Coastal Energen approves Adani Power resolution plan