Gautam Adani-owned Adani Power has withdrawn its offer to acquire the KSK Mahanadi project in Chhattisgarh, stating that the acquisition is unviable as Uttar Pradesh Power Corporation (UPPCL), one of its key customers, has decided to reduce tariffs for the procurement of electricity.
KSK Mahanadi defaulted on bank loans worth Rs 21,760 crore as of March 2018. The lenders are now staring at a significant write-off in the account as the company will be referred to the National Company Law Tribunal (NCLT) for debt resolution.
On average, banks are taking a 50 per cent haircut in debt resolution under the Insolvency and Bankruptcy Code, 2016.
