Adani Power, NTPC, JSW Energy Compete for Sinnar Thermal Project
POWER & RENEWABLE ENERGY

Adani Power, NTPC, JSW Energy Compete for Sinnar Thermal Project

Some of India's largest power producers, including Adani Power, JSW Energy, Jindal Power, Vedanta Group, Torrent Power, and the state-owned NTPC, are among the 15 companies that have submitted formal expressions of interest (EOIs) to provide a resolution plan for taking over the debt-laden Sinnar Thermal Power near Nashik in Maharashtra.

The 1,350 MW power plant, a subsidiary of RattanIndia Power, was initially developed by Indiabulls Power. It is one of the few readily available power producers in India, where building a greenfield project is both time-consuming and costly.

Bidders have until later this month to submit an initial resolution plan, which will include a Rs 100 million deposit, according to people familiar with the matter.

A person familiar with the plant noted the project's attractiveness, highlighting that it includes 1,600 acre of land, with only 110 acre yet to be acquired, allowing any company buying it to potentially double its capacity by adding another 1,350 MW. However, they also mentioned that coal supply has been and remains a significant issue for the prospective buyer. In December 2022, the government-owned South Eastern Coalfields cancelled the coal supply contract with Sinnar, citing the non-availability of a power purchase agreement (PPA) and the non-commissioning of most units of the plant. Sinnar's PPA with Maharashtra State Electricity Distribution Company (MSEDCL) was cancelled a few years ago.

The person further explained that coal supply is a major challenge, and only one unit of 270 MW has achieved commercial operations. The remaining four units have only operated at full load for three to seven hours, indicating that significant work is needed. Additionally, there could be potential litigation regarding the acquired land. On the positive side, the company possesses good equipment from companies like BHEL, Kirloskar, and L&T.

Sinnar was admitted to insolvency after the bankruptcy appellate court vacated a stay to initiate corporate insolvency against the company. The plea for recovery had been filed by Shapoorji Pallonji & Co. for non-payment of dues after constructing part of the plant.

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Some of India's largest power producers, including Adani Power, JSW Energy, Jindal Power, Vedanta Group, Torrent Power, and the state-owned NTPC, are among the 15 companies that have submitted formal expressions of interest (EOIs) to provide a resolution plan for taking over the debt-laden Sinnar Thermal Power near Nashik in Maharashtra. The 1,350 MW power plant, a subsidiary of RattanIndia Power, was initially developed by Indiabulls Power. It is one of the few readily available power producers in India, where building a greenfield project is both time-consuming and costly. Bidders have until later this month to submit an initial resolution plan, which will include a Rs 100 million deposit, according to people familiar with the matter. A person familiar with the plant noted the project's attractiveness, highlighting that it includes 1,600 acre of land, with only 110 acre yet to be acquired, allowing any company buying it to potentially double its capacity by adding another 1,350 MW. However, they also mentioned that coal supply has been and remains a significant issue for the prospective buyer. In December 2022, the government-owned South Eastern Coalfields cancelled the coal supply contract with Sinnar, citing the non-availability of a power purchase agreement (PPA) and the non-commissioning of most units of the plant. Sinnar's PPA with Maharashtra State Electricity Distribution Company (MSEDCL) was cancelled a few years ago. The person further explained that coal supply is a major challenge, and only one unit of 270 MW has achieved commercial operations. The remaining four units have only operated at full load for three to seven hours, indicating that significant work is needed. Additionally, there could be potential litigation regarding the acquired land. On the positive side, the company possesses good equipment from companies like BHEL, Kirloskar, and L&T. Sinnar was admitted to insolvency after the bankruptcy appellate court vacated a stay to initiate corporate insolvency against the company. The plea for recovery had been filed by Shapoorji Pallonji & Co. for non-payment of dues after constructing part of the plant.

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