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Adani Group Wins The Bid For KSK Mahanadi Thermal Power Plant

The Adani coal mines are also the major coal suppliers in the country. The company also operates some of the largest thermal power plants abroad.

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Adani Group Wins The Bid For KSK Mahanadi Thermal Power Plant

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  1. ADANI GROUP WINS THE BID FOR KSK MAHANADI THERMAL POWER PLANT

  2. Adani Power has won the title of being the highest bidder for the KSK Mahanadi thermal power plant in Chhattisgarh. This project is going to have a total capacity of 1,800 MW. The Adani Group had made an offer of INR 27,000 crore for this project. This offer made by the Adani Group ensures a 92% recovery from the lenders. The KSK Mahanadi project is currently undergoing insolvency proceedings at the National Company Law Tribunal.

  3. As per recent reports, 10 financial bidders were received for the thermal power company. Other big names include Vedanta, NTPC, Coal India, JSW Energy, Capri Global Holdings, etc. However, the Adani Group outshone the other bidders. The Adani Group’s offer is a combination of INR 12,500 crore in upfront cash, and INR 9,000 crore in accumulated cash as three of the units of the plant are operational and estimated receivables of INR 5,500 crore.

  4. The Troubles For KSK Mahanadi: The KSK Mahanadi thermal project had to undergo a lot of troubles while carrying out its business operations. The company’s trouble started after it defaulted on bank loans worth INR 20,000 crore in 2018. At that time, the lead lender for the project was Power Finance Corporation Limited. It is a state-owned non-banking financial corporation. After the default, the lender started debt structuring. This involves the sale of various assets of the company.

  5. Adani Power was one of the top bidders for the project at that time. However, it withdrew its bid in 2019. In fact, the Adani Group had shown its interest in acquiring the KSK Mahanadi thermal power plant even before it was admitted for insolvency in October 2019. During late 2018, the company had offered INR 10,300 crores for this project. However, it backed out in 2019 after the Uttar Pradesh Government revised the tariff downwards. The company was submitted to NCLT in 2020 under the insolvency and bankruptcy code.

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