Six companies, including Vedanta and Jindal Power, are competing to acquire Athena Demwe Power, which owns the 1,750-MW Lower Demwe hydroelectric project in Arunachal Pradesh. Other bidders are JSW Energy’s arm, Greenko Energies, THDC India (owned by NTPC), and Orissa Metaliks.
These companies have been recognized as potential buyers, but their eligibility will be checked by the committee of creditors (CoC). The Lower Demwe project, located on the Lohit River, is considered important for strategic and national reasons. It received environmental clearance in 2010 but has been delayed due to pending forest clearances.
Athena Demwe Power, which has liabilities of over ₹567 crore, entered the insolvency resolution process in 2017. Although a revival plan was initially accepted by the CoC, it was later rejected by the National Company Law Tribunal (NCLT) due to a lack of required bank guarantees from the winning bidder, Sikkim Power Investment Corporation.
In April, the NCLT directed fresh resolution plans, extending the insolvency resolution process by 120 days. Sikkim Power Investment challenged this but was given two weeks to submit a new plan alongside other bids.
Legal experts say that once potential buyers are confirmed, they will receive detailed information and submit their plans for CoC approval.
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