“The 600 MW plant is a rare running plant available with all linkages in place so bidders want to make sure they put their best foot forward and hence more time has been given,” said one of the persons, who did not wish to be identified.
This is the second extension to the bidding deadline. ET in its September 14 edition reported the extension of the deadline to October 17.
Lenders have, however, made it clear that this is the last extension of the deadline for bids.
More than a dozen bidders including large Indian conglomerates such as
, , , Jindal Power, Hindustan Powerprojects, & Minerals and Jindal India Thermal, and bad loan aggregator Phoenix ARC have expressed interest in taking over the company.
“Some bidders like state-run NTPC, which is a strong candidate to take over the company, need some specific government permissions to make a binding bid which takes some time. All in all, demand for the plant remains strong and close to a dozen companies have already visited the plant as part of their due diligence,” said a second person.
NTPC, which is currently operating a 300 MW unit, is set to restart the second 300 MW unit on Tuesday which is expected to boost the valuation of the plant.
Bankers expect the value to go up after both units start functioning as SKS Power Generation will be a rare operational plant available for acquisition in the country.
“The second unit has finished testing and will start operations as early as Wednesday. Once fully functional it will become more attractive to buyers and lenders can expect a better price,” said a person familiar with the plan.
Process advisor BoB Capital Markets and resolution professional Ashish Rathi did not reply to ET’s emails seeking comment.
NTPC is currently running the two units of 300 MW each for a fee on special government directives aimed at overcoming power shortages.
The plant has 25 years of fuel agreement with South Eastern Coalfields, a
arm with a railway line directly transporting coal to the plant. It also has power purchase agreements with the states of Rajasthan, Bihar and Chhattisgarh.
