Bidders set up close fight for SKS Power; financial creditors could make a full recovery

Bids to take over the debt-laden 600-MW SKS Power Generation plant are in a tight range, setting the stage for a close contest between the bidders that include two of the country’s biggest conglomerates – the Adani Group and Reliance Industries. Initial resolution plans submitted by the seven bidders are in the range of ₹1,400 crore-₹1,600 crore, indicating a maximum recovery at this stage itself at 85% for financial creditors for their ₹1,890-crore dues. These bids are on basis of net present value (NPV), which discounts future cash flows to factor in the time value of money.