Adani and Jindal compete to acquire Ind-Barath Thermal Plant

Gautam Adani-backed Adani power, and Naveen Jindal's Jindal Power are competing to buy the Ind-Barath Thermal Plant in a bankruptcy auction.

According to a report by The Economic Times, both JPL and Adani group have expressed their interest and are evaluating the prospects of giving respective binding bids.

Located in Tamil Nadu, the Ind-Barath power plant, which has two complete power generation units of 150 MW each, has been closed since 2016 amid the lack of Power Purchase Agreements (PPA).

A teaser note, sent out to potential bidders stated that an investment of approximately Rs 75 crore needs to be made by the buyer to restart the power plants.

Reportedly, the resolution professional has admitted Rs 2148 crore in claims from financial creditors. In this list, the Punjab National Bank is said to top the list with 21 per cent, followed by SBI with 18 per cent of the total value. Bank of Baroda, Bank of India, Axis Bank, and Canara Bank are the other creditors.

Amid the shortage of power supply, and the government’s nudge to state-owned banks to finance the distressed power companies, the demand for such companies has increased in recent times. Earlier last month, Athena Chhattisgarh Power was acquired by Vedanta for Rs 565 crore in liquidation for the captive process. Besides, Jindal Power is all set to acquire Simhapuri energy for Rs 300 crore, the report said.

DH could not independently verify the ET report.