Vedanta quoted the highest offer of Rs 2,500 crore for GMR’s 1,370-MW thermal power plant in Raikheda, Chhattisgarh, sources told FE. The offered price estimates the cost of the plant at Rs 1.8 crore/MW, significantly lower than the Rs 6 crore/MW needed to set up a coal-based power generation asset. Adani Power is said to have quoted the second highest price, but it could not be immediately ascertained. GMR’s Chhattisgarh unit’s debt stood at around Rs 7,500 crore, sources said. The group of lenders, led by Axis Bank, converted part of their debt towards the asset earlier in 2017, resulting in them owning more than 52% equity in the asset. Other major bankers to the power plant with exposure of more than Rs 500 crore include Power Finance Corp, Bank of India, Canara Bank and Union Bank of India.
Low prices offered for power projects reinforces the apprehension that the National Company Law Tribunal (NCLT) may bring down the value of projects, hurting both lenders and existing promoters. In February, the RBI had asked banks to initiate a resolution plan even for a one-day payment default. Read More