Hindustan Powerprojects is looking to acquire stressed thermal power plants, besides bidding for renewable energy projects in India. The private power producer, which had earlier put in a bid for Avantha Power’s 600 Mw Jhabua power plant, has no plans to expand its capacity through new projects but is open to buys.
With 6,000 Mw of power generation capacity, the firm has presence across thermal, hydro and solar power sectors. “We will bid for multiple assets (that will undergo a resolution process under the Insolvency and Bankruptcy Code). There would be enough interest from bidders, but there won’t be any over-exuberance. We believe there will be rational bidding,” Ratul Puri, chairman, told Business Standard.
Puri said some price discovery had already taken place when lenders called bids outside of the National Company Law Tribunal (NCLT). Some of the assets were, however, priced high and haircuts had to be taken by lenders. “You cannot run a second cycle if the asset is priced wrong,” he said. The bid price, he said, could be lower in the NCLT because there was a risk that some of the power purchase agreements signed by these units could be cancelled.
On the renewable side, the company would bid for new projects since, according to Puri, thermal assets in distress were better than picking up stressed green power projects. At the same time, the company would be looking at opportunities overseas, especially in the Far East for solar power projects.