Companies

NTPC eyes insolvency hit Avantha’s Jhabua Power Project

Twesh Mishra New Delhi | Updated on December 20, 2019 Published on December 20, 2019

NTPC Limited is expected to place its first bid for a stressed asset under the Insolvency Bankruptcy framework soon.

According to officials in the know, NTPC is going to bid for the Jhabua Power project in Madhya Pradesh. NTPC is currently in the process of conducting due diligence for the project, but it largely meets the desired requisites.

NTPC officials said that they would want to bid for projects that are operational and nearer to sources of coal.

This project is a subsidiary of Avantha Power & Infrastructure Limited. JPL currently has 600 MW thermal power generation capacity fully operational and 660 MW under implementation.

Financial creditors have raised claims of more than ₹5,066 crore against JPL. Of these, claims of ₹1,034.5 crore have been raised by Power Finance Corporation while ₹732.03 crore have been raised by the State Bank of India.

The Avantha Group was founded by Gautam Thapar. The Group has business interests in diverse areas, including pulp and paper, power transmission and distribution equipment and services, food processing, farm forestry, chemicals, energy, infrastructure, information technology (IT) and IT-enabled services.

The Group companies include Crompton Greaves Limited, India's largest power equipment company, Ballarpur Industries Limited (BILT), India's largest paper manufacturer, both listed on the Indian stock exchanges and Avantha Power & Infrastructure Limited (APIL) amongst others.

Insolvency proceedings against JPL have been initiated by the National Company Law Tribunal (NCLT) in March this year.

Published on December 20, 2019
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