IFCI on Wednesday sought bids to offload its debt and equity exposure of Rs 1,670 crore to Uttarakhand-based Sravanthi Energy. The sale is being held as per the Swiss challenge method, based on an existing offer in hand worth Rs 427.50 crore for the debt and equity exposure. IFCI\u2019s outstanding debt exposure to the project stood at Rs 1,529.18 crore at the end of January, while the face value of its equity exposure was Rs 140.72 crore. Phase-I of the project, with a capacity of 225 megawatts (MW), is fully operational, while Phase-II, having an equivalent capacity, is around 85% complete physically, IFCI said in a sale document. Also Read:\u00a0Repco Home Finance Q3 net profit jumps 31% to Rs 56 crore\u00a0 \u201cThe asset offered for sale consists of multiple project term loans and equity investments and their related security interest on pari-passu basis or otherwise, accrued interest, guarantee and fee, and other associated rights and privileges, if any. The sale will be on \u2018as-is-where-is and what-is-where-is basis\u2019 and without any recourse to IFCI,\u201d the lender said in the sale document. In November 2016, SBI Capital Markets (SBICaps) had issued a proposal for sale of lenders\u2019 51% stake in Sravanthi Energy\u2019s Uttarakhand plant. The other lenders to the project, as per a presentation by SBICaps, were Axis Bank, Canara Bank, Punjab National Bank, Indian Overseas Bank and two of the erstwhile associates of State Bank of India. The project had been facing financial stress due to a delay in commissioning and the unavailability of gas, as per the presentation. The company had defaulted in servicing interest and principal repayment, after which the consortium of lenders, led by IFCI, converted debt worth Rs 185.33 crore to equity under the Reserve Bank of India\u2019s (RBI) strategic debt restructuring (SDR) scheme in 2015. Assets in the power sector have been a cause for concern for banks for some time now as lack of power purchase agreements (PPAs) and other structural issues have led to many of these projects turning unviable and kept new investors away.