Sarda Energy & Minerals, a Chhattisgarh-based vertically integrated steelmaker that also owns captive iron ore mines, outbid the Naveen Jindal group and torrent power in a bidding process for the company, which is being managed by a resolution professional, the sources said.
bank of baroda and state bank of india they are the lenders of SKS Power Generation (Chhattisgarh). His outstanding dues from the company, including principal and interest, amount to โน1800 crore, according to records available from the Bankruptcy and Insolvency Board of India.
"The winning bid gives the lenders not only a full recovery, but also a long-term advantage of the company's performance," said a person familiar with the matter.
Sarda Energy & Minerals and Ashish Rathi, a resolution professional at SKS Power Generation (Chhattisgarh), did not respond to ET's inquiries until press time on Friday. SKS Power Generation (Chhattisgarh) had attracted the interest of several bidders, including Adani Group and Trusted Industries in a preliminary stage. Eventually, those two withdrew from the process. The company has two power plants, each with the capacity to generate 300 MW of power. The company had been in trouble because the second power plant was not operational. During the insolvency process, the lenders instilled interim financing into the company to bring the second power plant online. The company became profitable after the second plant was started.
Sarda Energy & Minerals is said to have made an aggressive bid for the company because it also owns coal mines near SKS Power Generation (Chhattisgarh) power stations and has easy access to fuel, making power production more profitable. .
Torrent Power is said to have shown interest in the company because it holds electricity distribution licenses and the acquisition of a power producer would have helped it have an integrated business model. The Naveen Jindal group also owns coal mines and its acquisition strategy was based on similar lines from Sarda Energy & Minerals.
