Business
Co mandates SBI Caps to look for fresh bidders; interested bidders to submit confidentiality pacts by December 5
Updated : Mar 19, 2018, 05:41 AM IST
The Nagpur-based Abhijeet Group has revived its bid to sell off its upcoming power plant in Jharkhand after negotiations with Srei Group turned unsuccessful, and has mandated SBI Caps on behalf of the lenders to find a buyer for its 1080MW power project.
The lenders to Abhijeet's beleaguered plant, including State Bank of India and Rural Electrification Corp, have been trying to find a suitor for the project and had initiated talks with the Kanorias of Srei, who are present in the energy sector through their group outfit India Power Ltd.
The talks with Corporate Power Ltd (CPL), belonging to Manoj Jayaswal-promoted Abhijeet Group, have failed forcing the lenders led by SBI Caps to look for fresh bidders.
The merchant banker asked interested bidders on Friday to sign confidentiality pacts and submit them by December 5.
Abhijeet Group's Corporate Ispat Alloys Ltd holds majority of 78.9% stake in CPL.
"We had given a proposal earlier but have not heard anything since from SBI Caps," Hemant Kanoria, chairman & managing director of Srei Infrastructure Finance, told dna.
SBI Caps said it is looking for strategic investors for the 1080mw project consisting of four units of 270mw each at Chandwa in Latehar district in Jharkhand, inviting offers from parties willing to take over the project.
Following the sole response from Srei in May, bids were invited from other prospective investors as well but major power players like NTPC and the Tatas, despite showing initial interests, backed out later.
The talks with Srei's India Power failed as the Kanorias asked for a significant hair-cut from the lender to the project, while suggesting that merchant bankers failed to revive talks with the company thereafter.
The value of the project, spread over 768 acre, has been pegged at around Rs 9,000 crore and the debt burden stands at Rs 4,000 crore.
Significant delays in the commissioning of power plant forced Abhijeet Group to approach corporate debt restructuring (CDR) cell with a proposal to restructure both phases of 540mw each.
The project was downgraded to default grade in April 2013, and in August India Ratings discontinued rating due to lack of adequate information.
CPL had signed a fuel supply pact with Coal India's Central Coalfields for 1.99 million tonne of coal and the balance was promised by promoter Corporate Ispat which was allocated a captive coal mine.