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.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

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 Transport

PM Modi Opens Sonamarg Tunnel, Announces Infrastructure Boost for J&K

Prime Minister Narendra Modi inaugurated the Sonamarg tunnel in Jammu and Kashmir on Monday, marking the beginning of transformative infrastructure development in the Union Territory. The new initiatives aim to boost tourism and significantly reduce travel time between Srinagar and Leh. Union Road Transport Minister Nitin Gadkari announced timelines for over a dozen major projects, including highways, tunnels, and ropeways, collectively valued at approximately Rs 1 trillion. Speaking at Sonamarg, Modi highlighted J&K's emergence as a hub for tunnels, high-bridges, and ropeways, wi..

Next Story
Infrastructure Transport

Telangana CM Seeks Regional Ring Road and Rail Support for Hyderabad

Telangana Chief Minister A. Revanth Reddy has appealed to Prime Minister Narendra Modi to approve the Regional Ring Road (RRR) and the proposed 'regional ring rail' to facilitate Hyderabad's transformation into a global city. Speaking at the launch of UNIKA, the autobiography of former Maharashtra Governor Ch. Vidyasagar Rao, Reddy emphasised the need for federal cooperation to propel Telangana toward becoming a $1 trillion economy. Reddy highlighted Hyderabad’s contribution of 60% to Telangana’s income and sought Union support for key initiatives, including a dry port and the expedited c..

Next Story
Infrastructure Urban

India’s Infrastructure Push to Propel Economic Growth in FY26

The Indian government’s capital expenditure on large-scale infrastructure projects, including highways, railways, and power development, along with investments in critical sectors such as defence, is expected to drive economic growth in FY2025-26 and beyond. A report by financial services firm Prabhudas Lilladher (PL) highlights the positive impact of these initiatives, with significant momentum already evident in sectors like railways, defence, power, and data centres.The 2024-25 Union Budget allocated an impressive Rs 11.1 trillion for infrastructure, and this figure is expected to increas..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000