Led by State Bank of India (SBI), lenders to Athena Chattisgarh Power (ACPL) have sought bids to sell its under-construction 1,200 MW thermal power plant, a bid document showed. The company’s total debt stood at R5,350 crore as on December 2016 and SBI Capital Markets has been mandated to look for a buyer.
According to the document, the (2×600 MW) sub-critical coal-based thermal power project is 87% complete and the total land required for completion of the project is 966 acre (within plant boundaries). “Entire land has been acquired except 38 acre of forest land which is to be acquired,” it said.
ACPL is a special purpose vehicle (SPV), promoted by Athena Energy Ventures (AEVPL) — a joint venture among Athena Projects Private Limited, PTC India and Infrastructure Development Finance Company (IDFC).
According to its website, the first unit of the plant was expected to be commissioned in a period of 39 months from financial closure and the second was expected to be commissioned in 42 months from financial closure. The project achieved financial closure with the signing of the loan agreement on March 30, 2011.
The company is headed by A Sitarama Raju as its chairman and Krishna V Tatineni as its vice-chairman.
ACPL has signed an implementation agreement with the Chhattisgarh government for development of the project. According to a power ministry document, the company has signed long-term and short-term power purchase agreements with PTC; 444 MW with Chhattisgarh State Power Trading Company and 150 MW with the Nepal electricity authority.
According to the bid document, delay in land acquisition and the slow progress of boiler & turbine erection along with financial problems have plagued the power project. According to a Brickwork Ratings report, while the initial cost of the project was R6,200 crore, it was later revised to R8,464 crore. The increase of 35%, Brickwork Ratings said, was owing to depreciation in the rupee as the power generation equipment was being sourced from China.