JSW Energy has increased its bid for stressed Prayagraj Power Generation, a JP Group company, to about ₹6,200 crore from its earlier bid of ₹5,890 crore.

This comes a day after Tata Power and ICICI Venture-promoted Resurgent Power Venture announced that the lenders of the power company has issued letter of intent to its bid.

To counter the Resurgent Power bid, JSW Energy has also increased the equity issuance to lenders to 15 per cent from 13.9 per cent offered earlier, said sources close to the development.

JSW Energy has also offered to take care of the tax liabilities against its earlier stance that it should be deducted from the upfront cash of ₹5,600 crore it was willing to pay, he added.

Lenders led by the SBI, who are selling the asset outside the purview of insolvency proceedings under NCLT, will consider the bids in a meeting on Friday.

Lenders had acquired majority stake in Prayagraj by converting debt of ₹11,000 crore into equity.

The promoter company Jaiprakash Associates currently owns 11 per cent stake.

JSW Energy’s ₹5,600-crore bid was earlier declared as the highest one and was issued letter of intent but Resurgent Power snatched the deal by offering ₹6,000 crore. Singapore-based Resurgent Power is a joint venture with Tata Power holding 26 per cent stake through its wholly owned Singapore-based subsidiary.

The balance 74 per cent of Resurgent Power is held by ICICI Venture Funds and other international investors including Kuwait Investment Authority, Oman State General Reserve and Canadian pension fund Caisse de dépôt et placement du Québec.

Prayagraj has a 1,980 MW super critical coal-based power project in Uttar Pradesh. It has all approvals and clearances in place along with long-term power purchase agreement and fuel-supply agreement.

Earlier, RBI had issued advisory to banks to resolve the company’s debt by before August-end.

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