Mahagenco-NTPC emerges as top bidder for Sinnar Thermal at Rs 3,800 crore

The Mahagenco-NTPC has outbid at least seven others including Adani Power, Vedanta Group, Jindal Power, Orissa Metaliks, and Singapore-based VFSI Holdings

The consortium of Maharashtra’s state-owned Mahagenco and public sector NTPC has emerged as the frontrunner to acquire the 1,350 MW Sinnar Thermal Power Plant near Nashik, according to a report by The Economic Times. 

 

Their bid of Rs 3,800 crore has positioned them ahead of Adani Power, the second-highest bidder, whose bid was reportedly below Rs 3,000 crore. Lenders are currently assessing the legal and regulatory compliance of each bid before initiating negotiations with individual bidders, the report said.

 

Sinnar Thermal Power Plant

The Sinnar Thermal Power Plant is located in the Sinnar Special Economic Zone (SEZ) near Nashik, Maharashtra. The plant has coal linkages from Coal India Limited (CIL) subsidiaries. It was developed by Indiabulls Power, but later became a subsidiary of RattanIndia Power.

 

In September 2022, the National Company Law Tribunal (NCLT) admitted the STPL for corporate insolvency. The plant officially entered insolvency in January this year after Shapoorji Pallonji & Co filed a plea over non-payment of dues. The deadline for bidders to make a pitch for the plant was closed on September 20.

 

Other than the Mahagenco-NTPC consortium, seven other entities, including Vedanta Group, Jindal Power, Orissa Metaliks, and Singapore-based VFSI Holdings, have also submitted bids, as earlier reported by Business Standard.

 

Major creditors identified

Power Finance Corp and REC are the plant’s two largest creditors, with total dues amounting to Rs 15,909 crore. Punjab National Bank, Axis Bank, Canara Bank, Bank of India and Life Insurance Corp are among the other creditors to the entity.

 

Bank of Baroda’s investment banking arm, BoB Caps, serves as the advisor to the committee of creditors (CoC), with Shardul Amarchand Mangaldas & Co providing legal guidance. Legal support to the resolution professional (RP), Rahul Jindal, is being handled by Trilegal.

 

Advantages of Sinnar plant for Mahagenco-NTPC

The Mahagenco-NTPC consortium’s advantage lies in its ability to leverage existing infrastructure from its 2,190 MW Koradi power plant near Nagpur. This could potentially simplify coal supply and operational logistics for the Sinnar plant.

 

Only one out of four units of the Sinnar plant has achieved commercial operations, however, providing further opportunities for bidders, the report noted. Additionally, the plant is surrounded by 1,600 acres, offering potential for future expansion.

 

While there are logistical challenges that need to be addressed, the plant’s appeal stems from its capacity potential.