Some of India’s biggest power producers, including Adani Power, JSW Energy, Jindal Power, Vedanta Group, Torrent Power, and state-owned NTPC, are among 15 companies interested in taking over the debt-laden Sinnar Thermal Power plant near Nashik, Maharashtra. This 1,350 MW plant, originally developed by Indiabulls Power and now a subsidiary of RattanIndia Power, offers a rare opportunity as building new projects in India is costly and time-consuming.
Bidders have until later this month to submit their initial plans, each requiring a ₹10 crore deposit.
“The great thing about this project is its 1,600 acres of land, with only 110 acres left to be acquired. This means the new owner can double the capacity by adding another 1,350 MW. However, securing a steady coal supply remains a challenge,” said a source familiar with the plant.
In December 2022, South Eastern Coalfields canceled Sinnar’s coal supply contract due to the lack of a power purchase agreement (PPA) and the plant’s incomplete commissioning. Sinnar’s previous PPA with Maharashtra State Electricity Distribution Company (MSEDCL) was canceled a few years ago.
“Coal supply is a significant issue. Only one unit of 270 MW is operational, while the other four units have run at full load for only a few hours. There’s a lot of work to be done, and potential legal issues around the land. On the bright side, the plant has high-quality equipment from BHEL, Kirloskar, and L&T,” added the source.
Sinnar was admitted to insolvency after the bankruptcy appellate court lifted a stay on corporate insolvency proceedings. Shapoorji Pallonji & Co. filed for recovery due to unpaid dues after constructing part of the plant.
Power Finance Corp and its subsidiary REC are the top creditors, with the company owing a total of ₹15,909 crore. Other creditors include Punjab National Bank (PNB), Axis Bank, Canara Bank, Bank of India, and Life Insurance Corp (LIC).
Located in the Sinnar Special Economic Zone (SEZ), the plant is about 50 km from Nashik and 4 km from a national highway.
Rahul Jindal, the resolution professional, and the companies involved did not respond to requests for comments. A spokesperson for JSW Energy also declined to comment.
Maharashtra’s MSEB Holding Company, which oversees power production, transmission, and distribution, may also be interested. Officials from MSEB Holding Co were not immediately available for comment. The state’s electricity generation company Mahagenco, which runs the 2,190 MW Koradi power plant near Nagpur, might be interested in keeping this large power asset under state control. Mahagenco is India’s largest state-owned power producer with over 13,000 MW of installed capacity.
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