JSW, Adani, others express interest in Avantha Power arm

<p> </p><p>Avantha Group’s Jhabua Power, which is undergoing insolvency proceedings, has received expressions of interest from JSW, Adani Power, National Thermal Power Corporation and Tata Power-backed Resurgent Power, said people directly briefed on the matter. <br><br>A few Singapore-based distressed asset investors and some local asset reconstruction companies are also said to have submitted EoIs, they said, adding that Vedanta group’s Sterlite Power may also participate in the bidding process. The deadline for submission of formal bids for the company is November 15. <br> </p><p>Jhabua Power was admitted for insolvency proceedings at the National Company Law Tribunal (NCLT) in March. The company operates a 600 mw thermal power plant in Madhya Pradesh which has power purchase agreements with the state electricity boards of Madhya Pradesh and Kerala. Another 600 mw of capacity is under construction. <br><br><br>A group of lenders, led by Axis Bank, has outstanding dues of Rs 3,000 crore from the company after it defaulted on loans taken to finance its capacity expansion plan conceptualised during a period of financial distress at its parent company, Gautam Thapar-owned Avantha Group. <br><br>Adani Power and Resurgent Power had also participated in a previously held auction process for the company which was shelved last year because lenders failed to reach an agreement on the sale terms. Adani Power had acquired Avantha Power and Infrastructure subsidiary Korba West Power Company five years ago. <br><br>“The Resurgent platform continues to evaluate various investment options depending on the quality of assets, its linkages on PPA, FSA, etc. At this stage, it will not be possible to respond to this query as it is very premature.” </p><p>Email queries sent to Adani Power and NTPC remained unanswered till as of press time. Spokespersons for JSW and Sterlite Power declined to comment on the matter. <br><br>Jhabua Power was initially dragged to NCLT by an operational creditor, Denmark-based FL Smidht Private Limited, which had provided coal handling equipment to the company and had an outstanding claim of around ?30 crore. <br><br>Subsequently, banks stepped in to lodge their claims and appointed Alvarez & Marsal’s Abhilash Lal as the resolution professional of the company once the committee of creditors (CoC) was formally convened in May. <br><br>Resurgent Power is a Singapore-based joint venture between Tata Power, ICICI Bank and Kuwait Investment Authority. It has made an offer to acquire Jaiprakash Associates-owned Prayagraj Power, which operates a 2,000 mw power plant in Uttar Pradesh. <br><br>Referred from economic times</p>