Reliance Industries, Adani Group, 5 Others Set For Tussle Over Bid For SKS Power: Report

Lenders of SKS Power Generation have received seven bids to acquire the distressed power producer. The company has received final bids from Reliance Industries, Adani Group, state-owned NTPC, Torrent Power, Jindal Power, Sarda Energy & Minerals, and Singapore-based Vantage Point Asset Management, The Economic Times reported.
 
The last date to submit the bids was December 30 and it will set Reliance Industries and Adani Group up for a confrontation, the report said citing people familiar with the matter.
 
“We have received bids and they are being evaluated. The financial parameters of the bids will now be discussed, and lenders may also seek more details from bidders before selecting the preferred one,” The Economic Times quoted one of the person familiar with the process.

The power company based in Chhattisgarh owes a consortium of Bank of Baroda and State Bank of India a total of Rs 1,890 crore. As per the report, 23 entities have expressed interest in the 600-megawatt (MW) coal-based power plant. The final bid submission date had been extended by the lenders four times after several bidders requested an extension. 

A railroad line transports coal straight to the plant and it has a 25-year deal for fuel supply with South Eastern Coalfields, an arm of Coal India. The company has power purchase agreements with Rajasthan, Bihar and Chhattisgarh.

Currently, state-owned NTPC is operating the two units of the power producer, each of which has capacity of 300 MW, for a fee in response to a government directive aimed to address electricity shortages. 

Last year, the plant's output was halted because its Hong Kong-listed owner Agritrade Resources was unable to run it due to internal financial issues.