- JSW Energy, part of the billionaire Sajjan Jindal group, has been declared the highest bidder for the bankrupt KSK Mahanadi Power Company.
- KSK Mahanadi Power Company operates a 3,600 MW coal-based power project in Chhattisgarh.
JSW Energy, part of the billionaire Sajjan Jindal group, has been declared the highest bidder for the bankrupt KSK Mahanadi Power Company, according to a stock exchange filing today by JSW Energy. This successful bid puts JSW ahead of competitors such as the Adani Group and NTPC, who were also vying for the electricity generation company in Chhattisgarh.
In a statement, the company announced that it had submitted its resolution plan as part of the corporate insolvency resolution process for KSK Mahanadi. Following the challenge process conducted by the resolution professional (RP), its financial proposal has been recognised as the highest offer.
JSW Energy added that a revised resolution plan, including this financial proposal, will be submitted to the RP and the Committee of Creditors (CoC) of KMPCL for voting and approval. A banker noted that since all the offers are quite similar, the voting process will determine the final decision on who will acquire the company.
The Adani Group was the highest bidder in the first round, with an offer of Rs 27,000 crore. Later, the Committee of Creditors conducted a challenge round, asking other bidders to better the offer. In the challenge round, JSW Energy emerged as the highest bidder.
KSK Mahanadi Power Company operates a 3,600 MW coal-based power project in Chhattisgarh. It currently has three operational units, each with a capacity of 600 MW, while the remaining units are at various stages of construction. The lenders have filed claims totalling Rs 29,330 crore against KSK Mahanadi, which entered the debt resolution process in 2020 following a default on debt payments.
Several banks, including the State Bank of India (SBI), have transferred their loans to asset reconstruction companies (ARCs) to recover some of their dues. KSK Mahanadi had power purchase agreements with Andhra Pradesh, Tamil Nadu, and Uttar Pradesh but defaulted on loans due to insufficient coal supply.
The company was allocated two coal blocks in Chhattisgarh, but this allocation was cancelled in 2014 following a Supreme Court ruling. Although the plant later received coal linkage under the power ministry’s “Shakti” scheme, it still had to import coal due to shortfalls.