NCLAT Opens Door for JSW Energy to Bid for Raigarh Champa Rail Infra

22 Jun 2025 , 11:09 PM

The National Company Law Appellate Tribunal (NCLAT) has overturned an earlier ruling by the Hyderabad bench of the NCLT that had blocked lenders of Raigarh Champa Rail Infrastructure Pvt Ltd (RCRIPL) from restarting the bidding process. This decision paves the way for JSW Energy to potentially join the resolution process for RCRIPL, a rail infrastructure subsidiary of the KSK group.

JSW Energy had previously acquired KSK Mahanadi Power, a 3,600 MW thermal power project for ₹16,084 crore through insolvency proceedings in March.

The appellate tribunal supported the lenders’ call to reopen the Expression of Interest (EoI) process by issuing a fresh Form G, stating it would foster healthy competition and likely fetch better bids.

NCLAT found no unfairness in the revised process since it remains open to all, not just JSW Energy. Existing applicants can also rejoin the process and participate in the challenge mechanism.

Earlier, five companies including Adani Power, Jindal Power, Medha Servo Drives, Sherisha Technologies, and Vedanta were in the race to acquire RCRIPL.

Medha’s resolution plan was earlier approved by the Committee of Creditors (CoC) with 100% voting, but later withdrawn after the CoC decided to initiate a challenge mechanism instead. The CoC’s move to cancel Medha’s plan and explore fresh bidding had received over 78% of member approval.

However, NCLT had ruled that reopening the process at this stage was against fairness and timeline principles of the CIRP, leading to rejection of multiple pleas from both the RP and JSW Energy.

NCLAT has now quashed the April 3, 2025 NCLT order and allowed the resolution professional to issue a fresh Form G inviting new EoIs, which will allow JSW Energy to participate in the process.

The appellate tribunal clarified that since the fresh bidding is open to all and not tailored to any single bidder, there is no discrimination or procedural unfairness. It also observed that using Medha’s earlier bid as a reserve price ensures there’s no loss of value to the corporate debtor during the re-bidding.

The CIRP against RCRIPL had begun back in January 2021, but the process was delayed due to legal complexities around consolidation with other KSK group entities.

RCRIPL is a special purpose vehicle set up to build and operate rail infrastructure connecting coalfields in Mand Raigarh to KSK Mahanadi’s power stations in Janjgir Champa, with integration into the Indian Railways network.

With NCLAT’s latest ruling, the resolution process now returns to open competition offering a fresh opportunity for all eligible buyers, including JSW Energy, to place revised bids.

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