Reliance Industries, Adani Power, NTPC in fray to acquire bankrupt SKS Power

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Nearly two-dozen bidders, including Reliance Industries Ltd, Adani Power, and NTPC Limited are interested in buying Chhattisgarh-based SKS Power Generation, the Economic Times reported on August 1, citing people familiar with the matter.

Companies such as Torrent Power, Jindal Power, Vedanta, DB Power, Sarda Energy & Minerals, Jindal India Thermal, and bad loan aggregators like Aditya Birla ARC, Phoenix ARC and Prudent ARC have also expressed interest in acquiring the distressed company, the report said.

SKS Power Generation is undergoing a corporate insolvency and resolution process since April. It owes a total of Rs 1,890 crore to two banks. Bank of Baroda has the major share of the loan, which stands at Rs 1,740 crore, while State Bank of India owes Rs 150 crore.

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The last day for the bid submission was July 28. Companies with a net worth of Rs 300 crore and Rs 1,000 crore of assets under management were allowed to participate in the bidding process, the newspaper reported.

The SKS unit has a capacity to produce 600 MW, out of which 300 MW is presently in working condition, it said.

Owing to the power crunch in the country, NTPC was recently assigned to operate and maintain the plant until the lead lender Bank of Baroda (BoB) finds a buyer.

The plant has power purchase agreements with Rajasthan, Bihar and Chhattisgarh.

Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.