Lenders to SKS Power give bidders a fourth deadline extension for due diligence

Mumbai: Lenders to Chhattisgarh-based distressed electricity producer SKS Power Generation have once again extended the due diligence deadline for prospective buyers, according to people aware of the development, allowing them time until December 30 to get approvals in place and submit their bids.

The decision to extend the deadline - the fourth so far- was taken at a creditors meeting this week. ET had reported earlier that the deadline was extended in September, October and November.

Reliance Industries, the Adani Group, state-owned NTPC, Torrent Power, Jindal Power, Hindustan Powerprojects, Sarda Energy & Minerals and Jindal India Thermal are among some 23 entities that have expressed interest in the company.

"Some bidders requested more time so an extension has been given. State-owned companies like NTPC need more time because, unlike private sector companies, they need approval from both their boards as well as the government," said a person familiar with the deliberations.

Email queries sent to process advisor BoB Capital Markets and resolution professional Ashish Rathi remained unanswered till as of press time. The corporate insolvency and resolution process for SKS Power Generation was initiated in April. The company owes ₹1,890 crore to a group of lenders led by the Bank of Baroda. At present, NTPC is running SKS Power Generation's two units of 300 MW each for a fee, following a government directive aimed at overcoming power shortages. "We have seen strong interest with a couple of bidders ready to submit bids as of today. But in the interest of fair competition, creditors are giving all an equal opportunity," said another person aware of the negotiations.