(THE NEWSMAN OF INDIA.COM) If reports are to be believed then NTPC Limited, India’s largest energy conglomerate has outbid the other bidders for the Avantha Group’s 600 MW Jhabua power plant in Madhya Pradesh, with a Rs 1,900-crore offer that was two and-a-half times more than the rival bid, people in the know said.
State-run NTPC’s offer is also the highest on a per-megawatt basis so far to buy out a stressed asset in the power sector. The thermal power producer undergoing bankruptcy proceedings owes more than Rs 5,000 crore to lenders, who could recover 38% of their loans if they accept the NTPC offer. This is the first time that the staterun power producer has bid for any stressed project. It had earlier decided against buying any stressed projects outside the Insolvency and Bankruptcy Code (IBC).