India Stressed Asset Revival: Avantha Power's Jhabua Power Plant

Last Modified: Mon Jan 13 2020 07:12:35 GMT+0530 (India Standard Time)
  • 600 MW
    Avantha Power's Jhabua Power Plant in Seoni district of Madhya Pradesh is a stressed asset owing to significant delays in project implementation due to issues related to land acquisition and lack of adequate power purchase agreements (PPAs). 600 MW has been commissioned and 660 MW is under construction.
  • 852 MW
    PPA that the project has been able to obtain amounting to around 71% of total generation capacity with Madhya Pradesh buying 35% and Kerala buying 36%.
  • 2.5 MTPA
    100% fuel linkage with Coal India.
  • Rs 4,300 crore
    total debt owed to a group of lenders led by Axis Bank as of Mar 2018.
  • Apr 2018
    Edelweiss Asset Reconstruction Co. and Kotak group company Phoenix ARC Pvt. Ltd emerge as top contenders to buy the project from lenders seeking a 50% 'haircut' on the transaction.
  • 61%
    Stake held by the lenders while the remaining stake is with the Avantha Power.
  • Jul 2017
    Business Standard reported that Avantha group was in talks with Resurgent Power, a joint venture between Tata Power Ltd and ICICI Ventures, the private equity arm of ICICI Bank, however this fell through.
  • Apr 2018
    Edelweiss Asset Reconstruction Co. and Kotak group company Phoenix ARC Pvt. Ltd emerge as top contenders to buy the project from lenders seeking a 50% 'haircut' on the transaction.
  • Aug 2018
    New Delhi-based industrial gases producer Goyal MG Gases Pvt. Ltd emerges as the highest bidder by making an offer to pay ₹ 2,350 crore in enterprise value for a controlling stake. Bid rejected in Oct 2018 on the grounds of not meeting certain requirements before the October 15 deadline for signing a definitive agreement.
  • Nov 2018
    Avantha Group (via Avantha Holdings) offers to pay Rs 24.30 billion to lenders to escape insolvency proceedings for its project. The group plans to take Rs 19 billion from Deustche Bank, while it is also discussion with investors for another Rs 5.3 billion through an equity infusion.
  • Jan 2019
    Lenders plan to re-invite bids by February 2019 as all previous bids fall through.
  • Dec 2019
    NTPC expresses interest in buying the stressed asset and announces it is preparing a bid. In addition, JSW, Adani Power and Tata Power backed Resurgent Power are known to have sent in their expressions of interest.
  • Rs. 1,900 crore
    Bid made by NTPC which values a unit at Rs 3.2 crore per MW against the construction cost of Rs 6 crore for new projects. Adani Power is reported to have made an offer of Rs. 750 crore (Rs. 1.25 cr / MW). Lenders could recover 38% of their loans if they accept the NTPC offer.