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    Reliance, Adani submit bids for Lanco Amarkantak

    Synopsis

    The RP restarted the sale process of Lanco Amarkantak in January, soon after lenders rejected a binding bid from Vedanta Ltd, which had offered nearly Rs 3,000 crore to lenders, including Rs 2,150 crore in the form of bonds to be paid over seven years, part payment from cash balance lying in the company, and some upfront payment.

    Reliance Industries shares fall 4% after earnings announcement
    Reliance Industries (RIL) and Adani Power have submitted binding bids to acquire distressed thermal power producer Lanco Amarkantak Power, two people aware of the development said.

    State-owned Power Finance Corporation (PFC) has also put in a bid in partnership with REC Ltd, the people said.

    Among the three bidders, RIL has made the highest offer — of around Rs 1,960 crore — to lenders, and most of the money would be paid upfront, one of the persons cited above said. If RIL emerges as the winning bidder, it would mark the conglomerate’s entry into coal-based power production.

    Adani Power has offered nearly Rs 1,800 crore in the form of bonds — at 8% interest — payable over five years, the person said.

    The PFC-REC consortium has offered Rs 3,400 crore payable over 20 years and 40% equity to lenders.

    Saurabh Kumar Tikmani, the resolution professional (RP) backed by KPMG, has admitted Rs 14,632 crore claims from 17 lenders. The share of PFC and REC alone accounts for 42% of the admitted claims, according to the company’s website.

    Reliance Industries, Adani Power, PFC and Tikmani did not respond to ET’s queries seeking comment.

    The RP restarted the sale process of the power company in January, soon after lenders rejected a binding bid from Vedanta Ltd, which had offered nearly Rs 3,000 crore to lenders, including Rs 2,150 crore in the form of bonds to be paid over seven years, part payment from cash balance lying in the company, and some upfront payment.

    The RP had received 11 expressions of interest (EoIs) after restarting the process.

    RIL, Adani Power, OP Jindal-promoted Jindal Power Ltd, Twin Star Technologies, an investment vehicle of Vedanta promoter Anil Agarwal, Oaktree Capital and a consortium of PFC, REC and NTPC submitted EoIs, ET had reported on February 26.

    Lanco Amarkantak Power has cash and cash equivalents and receivable of about Rs 1,300 crore.

    While restarting the sale process, lenders issued a revised Request for Proposal (RFP) stating that the applicant should not include cash and balance as part of its resolution plan.

    Lanco operates a coal-based thermal power project on the Korba-Champa state highway in Chhattisgarh. It has commissioned the first phase comprising two units of 300 megawatts (mw) each that supply electricity to Madhya Pradesh, Haryana, and its home state.

    The second phase, comprising another two units of 660 mw each, is under construction, while construction work on the third phase comprising 660 mw each has not yet begun, according to the company's website.




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