Lenders to SKS Power will meet on June 15 to name the qualified bidders for the company, after the date of submission of expression of interest (EoI) was extended to June 13, a bid document said. “The EoI, conforming to the conditions of this EoI document shall be submitted along-with the bid access fee latest by 5:00 pm IST on June 13, 2018,” the document said.
The total principal outstanding, as on March 31, stood at Rs 4,892 crore, of which SBI’s exposure was Rs 4,155 crore. SBI Capital Markets (SBI Caps) was appointed by SBI on behalf of the consortium to invite proposals through a bidding process and identify an investor for acquisition of at least 51% share in the company. In addition, SBI had also sanctioned fund-based working capital (FBWC) limit of Rs 414.6 crore, a letter of credit (LC) limit of Rs 42 crore and a bank guarantee limit of Rs 395 crore, according to a document seeking bids.
FE had reported that a consortium of lenders led by State Bank of India (SBI) has put on sale a 1,200-megawatt (MW) thermal power plant in Chhattisgarh set up by SKS Power Generation (Chhattisgarh). Unit I of phase I of the project, comprising a capacity of 300 MW, began commercial operation on October 6, 2017, while unit II of phase I, which consists of another 300 MW, became operational on April 1, 2018.
The company had entered into a power purchase agreement (PPA) with Chhattisgarh State Power Trading Company in 2011, under which the latter would buy 5% of the net energy generated at the plant at energy charges. It had also secured short-term PPAs with discoms of four states and a medium-term PPA with Noida Power Company.
A lack of PPAs and other structural issues has led to many power projects defaulting on loan repayment obligations. Banks are currently working on a plan to resolve R70,000 crore worth of non-performing assets (NPAs) in the power sector through operation and maintenance (O&M) contracts.