Lenders to GMR Chhattisgarh Energy have approved the bid by Adani Power, according to source, which said that the SBI-led consortium of lenders has issued Letter of Intent (LoI) to the bidder.
GMR Chhattisgarh Energy’s 1,370 Mw project, which has an outstanding debt of over Rs 5,800 crore, ran into trouble due to the absence of a long-term power purchase agreement (PPA), though it had a short-term agreement with Gujarat. At the group level, GMR would see reduction in debt exposure of equivalent quantum.
This would be the third project to be resolved outside the insolvency route in the power sector. Prayagraj thermal power project of Jaiprakash Associates, the first such, was bought by Resurgent Power, a JV promoted by Tata Power and ICICI Bank. The project currently is in a regulatory tiff with the Uttar Pradesh government, which wants the tariff to be reduced.
The other resolved project was SKS Binjkote. Lanco’s Teesta VI power plant found a buyer in the government-owned NHPC under the IBC process. Read more