Resolution process: Lenders seek bids from interested buyers for RattanIndia’a Amravati plant

By: |
Published: December 12, 2018 5:13:06 AM

The project owes Rs 8,215 crore to its lenders, including term loans of Rs 6,940 crore, working-capital loans worth Rs 815.5 crore and non-fund-based limits to the tune of Rs 459 crore.

The project owes Rs 8,215 crore to its lenders, including term loans of Rs 6,940 crore, working-capital loans worth Rs 815.5 crore and non-fund-based limits to the tune of Rs 459 crore.

Lenders to phase I of RattanIndia Power’s (RIPL) 1,350-megawatt (MW) Amravati Thermal Power Project, led by Power Finance Corporation (PFC), have sought bids from interested buyers for the plant.

The project owes Rs 8,215 crore to its lenders, including term loans of Rs 6,940 crore, working-capital loans worth Rs 815.5 crore and non-fund-based limits to the tune of Rs 459 crore.

SBI Capital Markets (SBICaps) is handling the sale process on behalf of lenders.

“Lenders have proposed to offer and transfer their existing security, including rights on project assets and pledge rights on shares of RIPL, as part of the assignment of debt,” SBICaps said in a public notice.

“An interested party may submit their request to participate in the transaction by executing and submitting a non-disclosure undertaking (NDU), and by providing a non-refundable bid participation fee of Rs 5 lakh by way of a demand draft in favour of Power Finance Corporation Limited payable at New Delhi,” it added. Bidders must submit their bids by January 1.

SBICaps plans to identify the successful bidder and issue them the letter of intent on January 11.

The Amravati project was selected after a case-I competitive bidding under Section 63 of the Electricity Act, 2003, for the supply of 1200 MW (net) power to Maharashtra State Electricity Distribution Company (MSEDCL). It achieved commercial operation date (COD) on March 13, 2015.

The thermal power project is one of the large non-performing assets (NPAs) in the power sector which are awaiting resolution.

In September this year, the Supreme Court halted insolvency proceedings under the RBI’s February 12 circular against seven coal-based stressed power projects with generation capacities of 10,190 MW, one of which was RattanIndia’s Amravati project.

As per the February 12 circular, lenders had to identify projects with even a day’s default and come out with a resolution plan within 180 days from the reference date of March 1, 2018 — August 27, 2018 — and initiate insolvency proceedings against them by September 11.

As many of these projects do not have power purchase agreements (PPAs) in place or are otherwise unviable, lenders have so far been unable to palm them off.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.