Jindal Power offers $1.68 bln for distressed coal-based power plant, say sources

KSK Energy Ventures

06/02/2024 13:08

By Sarita Chaganti Singh
       NEW DELHI, Feb 6 (Reuters) - Jindal Power, a unit of
India's Jindal Steel & Power Ltd,   JNSP.NS  has submitted a 140
billion rupees ($1.69 billion)
bid for a coal-based power project in the eastern region, two
sources familiar with the development told Reuters. 
    The company has submitted a financial bid for the distressed
KSK Mahanadi project that is being eyed by billionaire Gautam
Adani's Adani Power  ADAN.NS  and Anil Agarwal's London Stock
Exchange-listed Vedanta Ltd  VDAN.NS  among others, a source
aware of the matter said.  
    The 1,800-megawatt power project, built by KSK Energy
Ventures  KSKE.NS , is one of many distressed coal-fired private
power stations mired in insolvency proceedings in recent years
as owners did not have fuel supplies or the funds to complete
them.
    The project was admitted for insolvency proceedings in
October 2019 but the court has not called financial bids since
then. 
    "Jindal Power has submitted an unsolicited bid to authorised
resolution professional for KSK Mahanadi Power project in
Chhattisgarh," a government source said. The two sources did not
want to be quoted as they were not authorised to speak to media.
    Jindal Power and Sumit Binani- the resolution professional
appointed for the KSK Mahanadi power project by the insolvency
court - did not respond immediately to a queries sent by
Reuters. 
    The unsolicited bid shows renewed interest of Indian private
companies in coal-based power plants. 
    The share of private investments in India's coal-based power
has dwindled after 2018 due to lower demand and an ambitious
thrust of the federal government on renewable energy. 
    Coal-based power plants are back in focus in India as the
Asian country expects its demand to cross 260-gigawatts during
peak hours in summer this year. 
    India will operate new coal-fired power plants with a
combined capacity of 13.9 gigawatts until December this year,
the highest annual increase in at least six years.   

($1 = 83.0535 Indian rupees)

 (Reporting by Sarita Chaganti Singh, Editing by Louise Heavens)
 ((Sarita.ChagantiSingh@thomsonreuters.com;))