Mumbai: JSW Energy, part of the Sajjan Jindal-led conglomerate, has emerged as the highest bidder for the bankrupt KSK Mahanadi Power Company, according to a company filing on Tuesday.
This bid places JSW Energy ahead of prominent competitors, including the Adani Group and NTPC, reported Business Standard.
The company confirmed it had submitted a resolution plan for KSK Mahanadi, an electricity generator based in Chhattisgarh, as part of the corporate insolvency resolution process.
Following a challenge round conducted by the appointed resolution professional (RP), JSWs financial proposal was accepted as the leading offer.
JSW Energy stated it would now submit a revised resolution plan, incorporating its financial bid, to the RP and KSK Mahanadis committee of creditors (CoC) for voting and final approval.
A banking source indicated that with competing offers close in value, the CoCs vote will ultimately determine the acquisition outcome, the report said.
Initially, the Adani Group led the bidding with an offer of Rs 27,000 crore, but JSW Energy secured the top position in a later challenge round, according to the report.
KSK Mahanadi operates a 3,600 MW coal-fired plant in Chhattisgarh, with three units (600 MW each) currently operational, while others remain under construction.
Entering debt resolution in 2020 after defaulting on payments, KSK Mahanadi faces claims of Rs 29,330 crore from lenders.
Financial difficulties arose from coal supply issues, despite power purchase agreements with Andhra Pradesh, Tamil Nadu, and Uttar Pradesh. Its allocated coal blocks were cancelled following a 2014 Supreme Court ruling, and although the company later received coal linkages under the Shakti scheme, it has had to rely on imports due to persistent shortages.
