IDBI drags GVK power arm to NCLT; company seeks settlement

GVK Goindwal Sahib, which owns a 540-Mw coal fired power plant in Punjab, is GVK Group's first subsidiary to be taken to the NCLT for failing to replay the loans

Adding one more power asset to the pile of insolvency cases, IDBI Bank Limited has taken GVK Power (Goindwal Sahib) Limited to the National Company Law Tribunal (NCLT) seeking insolvency resolution under section 7 of the Insolvency and Bankruptcy Code, 2016.

GVK Goindwal Sahib, which owns a 540-Mw coal-fired power plant in Punjab, is GVK Group's first subsidiary to be taken to NCLT for failing to repay loans. A consortium of 13 lenders headed by IDBI Bank Ltd had provided Rs 450 billion debt to the GVK subsidiary. Of this, IDBI's share was Rs 7.34 billion.

The Hyderabad bench of NCLT has