- By Aditya Pratap Singh
- Tue, 04 Mar 2025 09:31 AM (IST)
- Source:JND
Power Sector Acquisition: With the Gujarat-based thermal power producer's lenders approving its bid, Jindal Power Ltd is all set to acquire Bhadreshwar Power for around Rs 500 crore. The committee of creditors of Bhadreshwar Power, which is currently undergoing the insolvency approval process, has voted in favour of the resolution plan of Naveen Jindal Group company Jindal Power Ltd (JPL), industry sources told news agency PTI.
As per the provisions of the Insolvency and Bankruptcy Code, the resolution professional of the debtor thermal power producer will send the plan to the National Company Law Tribunal for final approval. In several rigorous rounds of bidding, each participant was allowed to improve its offer. Ultimately, Jindal Power emerged as the highest and only bidder in the final round, they said.
A person close to the deal told PTI that the deal JPL plans to fund its bid of about Rs 500 crore entirely from internal accruals, and has committed an additional Rs 25-50 crore for capital expenditure to ensure operational efficiency post-acquisition.
Upon completion, the acquisition will be key to Jindal Group's strategic expansion, consolidate its presence in Gujarat and significantly strengthen its power generation portfolio. The move is in line with the company's long-term growth strategy to expand its energy presence across India while ensuring financial stability, the source said.
With Jindal Power moving fast to add Bhadreshwar Power to its portfolio, industry experts expect the acquisition to infuse new life into Gujarat's power sector, ensure power reliability and economic growth.
Bhadreshwar Vidyut, formerly known as OPGS Power Gujarat, operates two 150 MW coal-based power plants in Kutch. However, financial difficulties plunged the company into crisis, leading to its enrolment in corporate insolvency proceedings at the National Company Law Tribunal (NCLT) Chennai in October 2022 following an application by State Bank of India.
The company's debt was initially pegged at Rs 1,200 crore, but was later restructured to Rs 850 crore to resolve it. However, lenders rejected the restructuring, leading to the company going bankrupt. The distressed asset became a prime target for strategic investors, and Jindal-Pawar emerged as the frontrunners to revive the industry.
An email sent to the company did not elicit a response.
The Naveen Jindal Group, through Jindal Power, already operates 4,300 MW of thermal power capacity. The addition of 300 MW capacity at Bhadreshwar Power will now take its total installed thermal power capacity to 4,600 MW.
Apart from thermal power, the Jindal Group has ambitious plans for renewable energy expansion, aiming to have 12 GW of renewable energy capacity by 2030, storage facilities and large-scale green hydrogen production.
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(With Inuts From PTI)