NCLT gives nod to Sarda Energy's acquisition of SKS Power for Rs 2,200 cr

The National Company Law Tribunal (NCLT) has cleared the acquisition of bankrupt SKS Power Generation by Sarda Energy & Minerals for Rs 2,200 crore.

With this, Indian banks, which have an exposure of Rs 1,890 crore, will be able to recover their entire amount in the electricity generation firm, said a source in the company.

SKS owns a 600-Mw power plant in Chhattisgarh, which is currently being run by NTPC.

The committee of creditors, led by State Bank of India (SBI) and Bank of Baroda (BoB), approved the resolution plan with 100 per cent voting in favour of Sarda’s offer and against the offers made by other bidders.

When contacted, Sarda Energy & Minerals did not comment.

One of the bidders said there are not many coal-based projects up for sale now under the Insolvency and Bankruptcy Code (IBC), and SKS Power, with its own coal supply, was an attractive buy.

The company was sent to the bankruptcy court after it defaulted on loans worth Rs 1,890 crore to SBI and BoB in April 2022.

Hong Kong-based Agritrade Resources had earlier bought the plant from Indian lenders in November 2018 as part of a one-time settlement scheme.

But Agritrade itself fell into financial trouble and could not service the loan.

SKS Power Generation (Chhattisgarh) was set up by Anil Gupta of SKS Ispat.

In May this year, the National Company Law Appellate Tribunal (NCLAT) had allowed Sarda Energy to seek permission of the NCLT to get clearance for its offer.

Seven companies, including Vantage Point Asset Management Pte and Torrent Power, had submitted their offers for the company.

Story So Far

April 2022: Bankruptcy process initiated against the SKS Power Generation Chhattisgarh 

December 2022: 7 companies Sarda, Vantage Point Asset Management. and Torrent Power submit offers

April 2023: Five companies submit their revised resolution plan

June 2023: SEML emerged as highest bidder and lenders approve offer with 100% vote share; other bidders litigate