Promoters enter fray for Coastal Energen power, offer up to Rs 3,500 cr

SBI-led lenders had taken over the firm after it failed to repay Rs 6,000 cr; while Adani emerged as final bidder for the project, the I-T-tainted ETA Star Group now offers to buy its project back

The Ahmed Buhari-promoted Coal and Oil group which once owned the 1,200-Mw Coastal Energen thermal power venture in Chennai has bid for the project. Sources said the offer made by the company is around Rs 2,500-3,000 crore, and entails a bank haircut of around 50 per cent.

The lenders, led by SBI, took majority control in the Tamil Nadu-based company after it failed to repay its Rs 6,000 crore debt. The Adani Group and Edelweiss Group had made offers for the project. While Edelweiss bowed out of the bidding process, Adani emerged as the final bidder. Business Standard reported last