Konaseema Gas Power’s 445 MW plant back on the block; liquidator sets Rs 185.18 crore reserve across four lots

The liquidator of Konaseema Gas Power Ltd (KGPL) has invited fresh bids for the company’s 445 MW natural gas-based combined cycle power plant in Andhra Pradesh and the land parcels around it, offering the assets in four separate lots at a cumulative reserve price of Rs 185.18 crore, according to a sale notice issued on August 4.

The notice, issued by liquidator CA Sai Ramesh Kanuparthi from Hyderabad under Section 35(f) of the Insolvency and Bankruptcy Code, 2016 read with Regulation 33(1) of the IBBI (Liquidation Process) Regulations, 2016, sets August 19 as the last date for submission of expressions of interest along with all bid documents and earnest money deposit on the BAANKNET portal. The e-auction is scheduled for August 21 between 10 a.m. and 4 p.m., with unlimited extensions of five minutes each up to 7 p.m.

The assets, which form part of the liquidation estate, are located at Devarapalli in Ravulapalem, Dr. B.R. Ambedkar Konaseema district — formerly East Godavari district — of Andhra Pradesh. Bids are being invited through the e-auction platform at ibbi.baanknet.com, with the sale being conducted under the modes of sale specified in Regulation 32(a) to (d) of the Liquidation Process Regulations.

Lot-wise structure

The principal offering is Lot A.4, comprising the plant and machinery of the generating station — two Siemens V94.2 gas turbines of 139.44 MW each, two heat recovery steam generators and one steam turbine of 166.60 MW supplied by LMZ, Russia — together with buildings, other equipment and a land parcel of about 29.13 acres. Carrying Asset Id 3462, the lot has been set a reserve price of Rs 135.83 crore, with an EMD of Rs 6.79 crore and an incremental bid amount of Rs 0.67 crore.

Lot A.5, a land parcel of about 9.50 acres with a temple (Asset Id 3463), carries a reserve price of Rs 9.18 crore, an EMD of Rs 0.91 crore and an incremental bid amount of Rs 0.09 crore. Lot A.9, a land parcel of about 29.64 acres with a pond, plant and machinery, buildings and an APTRANSCO towers area including a river intake well (Asset Id 3467), has been priced at a reserve of Rs 31.62 crore, with an EMD of Rs 3.16 crore and an incremental bid of Rs 0.31 crore.

The fourth offering, Lot B, is about 5.80 acres of land abutting the power plant land at survey numbers 7/1, 6/2B, 6/3B and 7/4 of Kotha Peta and 36/2 of Devarapalli village (Asset ID 845), with a reserve price of Rs 8.55 crore, an EMD of Rs 0.85 crore and an incremental bid amount of Rs 0.08 crore.

The four lots together carry a reserve price of Rs 185.18 crore, an aggregate EMD of Rs 11.71 crore and aggregate land of about 74.07 acres, all figures derived by summation of the lot-wise numbers stated in the notice; the notice itself does not print a total. The nameplate capacity of the three machines listed under Lot A.4 sums to 445.48 MW, marginally above the 445 MW capacity described in the notice heading.

The EMD-to-reserve ratio is not uniform across the lots. On Lot A.4 the deposit works out to about 5 per cent of the reserve price, while on the three land-led lots it is close to 10 per cent, on figures derived from the notice. The incremental bid amount on Lot A.4 is about 0.5 per cent of its reserve price against roughly 1 per cent on each of the other three lots.

Bidders may bid for all or any of the lots as they prefer, subject to deposit of the applicable EMD and submission of the EOI as per the terms of the document applicable to each such lot, the notice said. Separate e-auction process information documents have been issued — document (II) for Lots A.4, A.5 and A.9, and document (III) for Lot B. The sale is on an “as is where is”, “as is what is”, “whatever there is” and “no recourse” basis.

Section 29A undertaking

Prospective bidders are required to submit, through the BAANKNET platform, an undertaking of eligibility under Section 29A of the Code stating that they do not suffer from any ineligibility under that section to the extent applicable, and that the EMD shall be forfeited if they are found ineligible at any stage.

The notice clarifies that the invitation only purports to invite prospective bidders and does not create any binding obligation on the liquidator or the company to effectuate the sale, with the liquidator retaining the right to extend, defer, cancel or modify any of the terms and conditions, including the auction timelines, and to reject any bid without prior notice or assigning any reason.

The notice carries a note that the liquidator’s authorisation for assignment is valid up to December 31, 2025, with a reference to the proviso to Regulation 7A of the IBBI (Insolvency Professionals) Regulations, 2016. Regulation 7A bars an insolvency professional from accepting or undertaking an assignment after December 31, 2019 without a valid authorisation for assignment, while the proviso carves out assignments already being undertaken — a position the National Company Law Appellate Tribunal has read as permitting continuation and completion of assignments accepted before expiry.

Sixth year of liquidation

KGPL, incorporated on July 10, 1997, set up the combined cycle station to draw on gas from the Krishna-Godavari basin. The company was admitted to corporate insolvency resolution on December 18, 2018 by the National Company Law Tribunal, Hyderabad bench, on a petition filed by IDBI Bank in CP (IB) No. 458/7/HDB/2018, according to IBBI records. With no resolution plan concluded, the committee of creditors opted for liquidation and the tribunal ordered liquidation on February 20, 2020, appointing Kanuparthi as liquidator. The liquidation period has since been extended by the tribunal on multiple occasions, most recently by an order dated July 12, 2024 in IA((IBC)-1462-2023, IBBI records show.

The August 21 auction follows a sequence of unsuccessful attempts to monetise the station. A sale notice issued in 2020 had offered the plant along with about 121.92 acres at a reserve price of Rs 410 crore. A June 2025 auction offered the plant under a single Lot-I at a reserve price of Rs 227.61 crore against an EMD of Rs 5 crore. The immediately preceding round, notified to IBBI on May 22, 2026 for an auction on June 12, carried a cumulative reserve price of Rs 198.44 crore and a cumulative EMD of Rs 13.03 crore across lots.

Measured against that May 2026 round, the cumulative reserve price now on offer is lower by Rs 13.26 crore, or about 6.7 per cent, and the cumulative EMD is lower by Rs 1.32 crore — both figures derived. The comparison is indicative rather than exact, since the IBBI filing for the May 2026 round did not disclose a lot-wise break-up, and the composition of lots offered in that round could not be independently established.

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