Jindal Power bids Rs 42.03 bn in cash for Lanco Amarkantak acquisition
POWER & RENEWABLE ENERGY

Jindal Power bids Rs 42.03 bn in cash for Lanco Amarkantak acquisition

Jindal Power (JPL), promoted by Naveen Jindal, presented an all-cash offer of Rs 42.03 billion to acquire Lanco Amarkantak Power, surpassing Adani Power's Rs 41 billion bid, according to individuals familiar with the situation.

JPL had sought approval from the bankruptcy court last week to participate in the sale process of Lanco Amarkantak. The National Company Law Tribunal (NCLT) in Amaravati directed JPL to submit a plan to lenders, along with a Rs 1 billion bank guarantee. The NCLT is set to hear JPL's petition regarding its participation in the sale process.

In a previous ruling, the tribunal permitted lenders to conduct a new auction for the sale of Lanco Amarkantak, acknowledging Adani Power's delayed offer made after the majority of lenders had approved a plan led by a Power Finance Corporation consortium. JPL argued before the tribunal that broader participation from bidders would enhance recovery for lenders, as per the sources.

"A legal expert noted, 'Adani itself gave a belated offer that is 36% higher than that offered by PFC. This shows that there is merit in allowing Jindal,? as reported by a media group.

If the tribunal grants permission, this would mark the second instance of a clash between Adani Power and JPL in acquiring a distressed thermal power company.

Both companies previously participated in the Coastal Energen auction, where Adani Power emerged as the winning bidder, offering Rs 34.4 billion.

Regarding the Lanco Amarkantak auction in December 2022, only the PFC-led consortium participated, with Adani and Reliance abstaining, citing violations in the sale process.

PFC's plan, offering Rs 30.20 billion, was approved by 95% of lenders and awaited tribunal approval. Adani Power later presented an unsolicited improved offer of Rs 36.5 billion, subsequently raising it to Rs 41 billion.

Lanco Amarkantak's operational first phase includes two 300 MW units, while the under-construction second phase comprises two 600 MW units. The company holds Rs 18 billion in cash from operations in the first phase.

RP Saurabh Kumar, backed by KPMG, has acknowledged Rs 146.32 billion of claims from 17 lenders.

Jindal Power (JPL), promoted by Naveen Jindal, presented an all-cash offer of Rs 42.03 billion to acquire Lanco Amarkantak Power, surpassing Adani Power's Rs 41 billion bid, according to individuals familiar with the situation. JPL had sought approval from the bankruptcy court last week to participate in the sale process of Lanco Amarkantak. The National Company Law Tribunal (NCLT) in Amaravati directed JPL to submit a plan to lenders, along with a Rs 1 billion bank guarantee. The NCLT is set to hear JPL's petition regarding its participation in the sale process. In a previous ruling, the tribunal permitted lenders to conduct a new auction for the sale of Lanco Amarkantak, acknowledging Adani Power's delayed offer made after the majority of lenders had approved a plan led by a Power Finance Corporation consortium. JPL argued before the tribunal that broader participation from bidders would enhance recovery for lenders, as per the sources. A legal expert noted, 'Adani itself gave a belated offer that is 36% higher than that offered by PFC. This shows that there is merit in allowing Jindal,? as reported by a media group. If the tribunal grants permission, this would mark the second instance of a clash between Adani Power and JPL in acquiring a distressed thermal power company. Both companies previously participated in the Coastal Energen auction, where Adani Power emerged as the winning bidder, offering Rs 34.4 billion. Regarding the Lanco Amarkantak auction in December 2022, only the PFC-led consortium participated, with Adani and Reliance abstaining, citing violations in the sale process. PFC's plan, offering Rs 30.20 billion, was approved by 95% of lenders and awaited tribunal approval. Adani Power later presented an unsolicited improved offer of Rs 36.5 billion, subsequently raising it to Rs 41 billion. Lanco Amarkantak's operational first phase includes two 300 MW units, while the under-construction second phase comprises two 600 MW units. The company holds Rs 18 billion in cash from operations in the first phase. RP Saurabh Kumar, backed by KPMG, has acknowledged Rs 146.32 billion of claims from 17 lenders.

Next Story
Infrastructure Urban

TRAI Evaluates Telecom Service in Nine Cities

In December 2024, the Telecom Regulatory Authority of India (TRAI) conducted Independent Drive Tests (IDT) across nine cities, highways, and railway routes, including Aligarh, Bhubaneswar, Jammu, Lucknow, Navi Mumbai, Raipur, Siliguri, Thiruvananthapuram, and the Vapi-Rewari Highway. The tests aimed to assess the quality of voice and data services provided by telecom operators such as Bharti Airtel, BSNL/MTNL, Reliance Jio, and Vodafone Idea using various technologies like 2G, 3G, 4G, and 5G. The drive tests evaluated Key Performance Indicators (KPIs) for both voice and data services, includi..

Next Story
Infrastructure Urban

Kolkata to Host North East Trade & Investment Roadshow

Kolkata is set to host the North East Trade & Investment Roadshow on March 7, 2025, at Hotel JW Marriott, starting at 10:30 a.m. Organized by the Ministry of Development of North Eastern Region (MDoNER) in collaboration with FICCI and Invest India, the event aims to attract investors and promote economic opportunities in the North East. The roadshow will be graced by Dr. Sukanta Majumdar, Minister of State for MDoNER & Education, along with Shri Dharmvir Jha, Statistical Adviser, MDoNER, and senior representatives from all eight North Eastern states. The event will feature presentations on ke..

Next Story
Infrastructure Energy

India’s Rooftop Solar Installations Surge by 86% in 2024

India added 3.2 GW of rooftop solar capacity in 2024, marking an 86% increase from the previous year, according to Mercom India Research’s latest Q4 & Annual 2024 India Rooftop Solar Market Report. The surge was largely fueled by the PM Surya Ghar: Muft Bijli Yojana, with the residential sector accounting for 74% of the total installations. In the wind power sector, NLC India and Adyant Enersol (Datta Infra) secured bids in SJVN’s auction for 600 MW of inter-state transmission system-connected wind projects. NLC India won 200 MW at a tariff of Rs 3.74/kWh, while Adyant Enersol secured 112..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?