NTPC to bid for Jhabua power plant facing IBC process

State-run power generation behemoth NTPC is preparing to bid for the 600-MW Jhabua power plant, which is facing insolvency proceedings, a top company official said. This is the first instance where the company is showing interest in brownfield expansion through stressed assets.

As reported by FE earlier, the power ministry has asked NTPC to bid for potentially viable projects that are being resolved under the Insolvency and Bankruptcy Code (IBC) and acquire them if valuations of the stressed assets are attractive. According to sources, Power Finance Corporation, Rural Electrification Corporation, SBI, Union Bank of India and Axis Bank were the main lenders, with each of them having exposure of more than `3,000 crore in the project.

The stressed power plant, located in the Seoni district of Madhya Pradesh, was developed by Jhabua Power Ltd, a special purpose vehicle promoted by Avantha group.