Mahagenco-NTPC emerges to be top bidder for Sinnar Thermal
Coal has been a major challenge for Sinnar since December 2022, when the South Eastern Coalfields cancelled the coal supply contract citing the non-availability of PPA and non-commissioning of the majority of units of the plant.
Mahagenco-NTPC emerges to be top bidder for Sinnar Thermal
A consortium of Maharashtra state government-owned power generation company Mahagenco and public sector NTPC has emerged as the top bidder to take over the 1,350 MW Sinnar Thermal Power plant near Nashik. According to sources, Mahagenco's bid of Rs 3,800 crore is above the second-placed Adani Power in the initial round of bids. Lenders are evaluating the legal and other compliances of the bidders, following which negotiations with individual bidders will start.
Coal has been a major challenge for Sinnar since December 2022, when the South Eastern Coalfields cancelled the coal supply contract citing the non-availability of PPA and non-commissioning of the majority of units of the plant. Sinnar's PPA with Mahadiscom was canceled a few years ago.
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Commodities company Vedanta Group, Naveen Jindal's Jindal Power, Kolkata-based Orissa Metaliks, and Varde Partners' Singapore-based arm VFSI Holdings are among seven companies that have made a formal bid to take over the distressed 1,350 MW Sinnar Thermal Power.
The Mahagenco-NTPC combine is best placed as it runs the 2,190 MW Koradi power plant near Nagpur and can use its existing infrastructure to supply coal and run the plant.
The power plant, a subsidiary of RattanIndia Power, was initially developed by Indiabulls Power and was admitted to insolvency in January following a plea by Shapoorji Pallonji & Co for non-payment of dues after constructing a part of the plant. All bidders have submitted an initial resolution plan, including a Rs 10 crore deposit.
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Power Finance Corp (Rs 6,553 crore) and its subsidiary REC (Rs 5,262 crore) are the top two creditors of the company, which owes total dues of Rs 15,909 crore. Punjab National Bank, Axis Bank, Canara Bank, Bank of India, and Life Insurance Corp are other creditors to the company.
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