Sarda Energy and Minerals acquires SKS Power Generation (Chhattisgarh) for Rs 2,657 crore

Sarda Energy and Minerals Ltd has successfully bid for SKS Power Generation (Chhattisgarh) Ltd, the coal-based thermal power company located in Raigarh district of Chhattisgarh. The Mumbai bench of the NCLT on 13^th August 2024 approved the Rs 2,657 crore resolution plan submitted by Sarda Energy and Minerals. The resolution plan was earlier approved by the CoC by 100% vote share.

As per the successful plan, an amount of Rs 1793 crore plus margin money amounting to Rs 161.89 crore aggregating to Rs 1,954.89 crore has been provided to the Secured Financial Creditors, against the admitted debt of Rs 1876.33 crore. Operational creditors have been provided Rs 144 crore against their total claims of Rs 575 crore. The plan provides for Rs 190 crore as CIRP cost and has a provision for Rs 501 crore capital infusion.

SKS Power Generation (Chhattisgarh) Ltd was dragged to insolvency court by Bank of Baroda in April 2022 for failing to pay an amount of Rs 128 crore.

Apart from Sarda Energy and Minerals Ltd, others in the race for the Chhattisgarh-based power generator were Vantage Point Asset Management Pte Ltd, Torrent Power Limited, NTPC & Jindal Power.

SKS Power Generation (Chhattisgarh) Limited has set up a coal based Thermal Power Plant located at Binjkote and Durramuda in Raigarh District, Chhattisgarh, India. The thermal power project consists of 4X300 MW capacity power generating units, utilizing the Indian coal as main fuel. To date, Phase I of 2X300 MW capacity has been completed and the Company is currently in the midst of commencing execution of Phase II 2X300 MW capacity.

About the Successful Resolution Applicant

Sarda Energy and Minerals Ltd is one of the lowest cost producers of steel (Sponge Iron, Billets, Ferro Alloys, Mining, Power, Pellets, Iron Ore, Wire Rod Mill, Eco Bricks) and one of the largest manufacturers and exporters of ferro alloys in India. Headquartered in Raipur, Chhattisgarh, the company merged Chhattisgarh Electricity Company Limited (CECL) with itself in 2007 with a vision to becoming a leading energy and minerals company.

The company is owned 72.64% by the promoters – Kamal Kishore Sarda and family. The company generated Rs 3,900 crore revenue and Rs 508 crore in net profit in FY24.

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