India Stressed Asset Revival: RattanIndia Power's Amravati Thermal Power Project

Last Modified: Thu Jan 02 2020 07:43:18 GMT+0530 (India Standard Time)
  • 2,700 MW
    RattanIndia Power's Amravati Thermal Power Project is located at village Nandgaonpeth, Amravati district, Maharashtra. The capacity will be built in 2 phases of 1,350 MW each. Phase 1 with installed generation capacity of 1350 MW has already been commissioned. It has 5 units of best in class BHEL each with a capacity of 270 MW.
  • 1,200 MW
    25 year PPA signed with Maharashtra State Electricity Distribution Co. Lt. (MSEDCL). The PPAs were contracted after a Case –I tariff based competitive bidding at a levelised tariff of Rs. 3.26/kWh.
  • 6.28 MPTA
    The project has assured coal linkages for entire 2,700 MW from Coal India limited (CIL). The Fuel Supply Agreements have been signed with South Coalfields Limited (SECL) which is a subsidiary of Coal India Limited (CIL). The railway line between Walgaon and Amravati power plant is operational ensuring timely regular coal supply to the plant.
  • Rs 6,575 crore
    total debt owed to a consortium of lenders led by Power Finance Corporation (PFC) as of Dec 2019. Other lenders include: State Bank of India, Axis Bank, UCO Bank, Life Insurance Corporation of India, Bank of India, Central Bank of India, Punjab National Bank, Canara Bank, United Bank of India, Syndicate Bank and REC.
  • 82 million litres
    Average daily water requirement for project. It has been allocated 240 million litres a day (MLD) from Morshi dam by Vidharba Irrigation Development Corporation (VIDC). The water is pumped to the plant via a 32 km long cross-country pipeline from an intake pump house located at Morshi near the dam. The capacity of raw water reservoir is sufficient to support operations of the power plant for 14 days.
  • Rs 20,000 crore
    total debt owed to a consortium of lenders led by Power Finance Corporation (PFC) as of Jun 2018 on account of the Amravati project as well as a second Nashik project. Other lenders include: State Bank of India, Axis Bank, UCO Bank, Life Insurance Corporation of India, Bank of India, Central Bank of India, Punjab National Bank, Canara Bank, United Bank of India, Syndicate Bank and REC (Phase I lenders).
  • Jun 2018
    Creditors meet to to discuss the takeover of the facility at Nashik. SBI Caps and NTPC appointed to undertake the financial and technical viability of the power plants . A task force of bankers and Power Finance Company formed to resolve the debt issue.
  • Rs 8,215 crore
    Total debt, term loans of Rs 6,940 crore, working-capital loans worth Rs 815.5 crore and non-fund-based limits to the tune of Rs 459 crore, as of 31 Dec 2018. Of this due amount, Rs 7,874.35 crore is to be paid to Phase I lenders, Rs 1,797.61 crore to IDBI Bank as Phase 2 lender and Rs 20.42 crore to ICICI Bank.
  • Dec 2018
    Lenders seek bids from interested buyers. SBI Capital Markets (SBICaps) to handle the sale process on behalf of lenders. Lenders propose to offer and transfer their existing security, including rights on project assets and pledge rights on shares of the project, as part of the assignment of debt.
  • Jan 2019
    The Aditya Birla group’s asset reconstruction company (ARC) makes a formal bid. Aditya Birla ARC, which has a tie up with US-based Verde Partners Inc, is also looking at the option to partner Goldman Sachs and Rajiv Rattan, promoter of the stressed company, to make the bid.
  • Feb 2019
    RattanIndia Board approves a composite debt restructuring proposal. As per the "Binding Settlement Proposal", a portion of the debt will be converted into redeemable preference shares, a part of the debt will be repaid based on funds infused by promoter group entities and the balance debt will be taken over by Aditya Birla ARC's trust.
  • Sep 2019
    RattanIndia Power accepts a letter of intent (LoI) by Aditya Birla ARC to buy out the bank debt. The deal is for a one-time settlement through which the ARC will buy Rs 4,000 crore of the Rs 7,000-crore debt at a 'haircut'. It means banks can exit the company after taking the hit and it also frees up the management of the company to try for a revival.
  • Dec 2019
    Lenders agree to take a 38% haircut against their exposure of Rs 6,575 crore. Aditya Birla Asset Reconstruction Company (ARC) will take over the power plant’s balance Rs 4,050-crore debt with funding from foreign funds including Goldman Sachs and Varde Partners. After this arrangement, the old lenders’ consortium and the ARC will own 15% each in RattanIndia Power. A 15% stake in the firm is worth a little over Rs 800 crore at current market prices. The promoters hold 53% in RattanIndia Power.