Adani, Jindal, Vedanta Bid for Control of IL&FS Tamil Nadu Power Plant

15 Jan 2024 , 10:06 AM

Twelve firms, including Adani Power, Jindal Power, and Vedanta Ltd, have indicated interest in purchasing IL&FS Tamil Nadu Power Corporation (ITPCL), one of the largest assets in the IL&FS portfolio with debt close to Rs 10,000 crore.

In the course of its resolution process, IL&FS recently sent out expressions of interest (EoIs) for the purchase of a 92% share in ITPCL, which is currently owned by the group holding company (12%), IL&FS Energy Development Company (80%), and other parties.

This asset includes a captive coal mine in Indonesia, a captive jetty next to the facility, and two 1,200 MW coal-based power stations in Cuddalore with the possibility to develop roughly 2,000 MW more.

Additionally, Adani Power and Jindal Power are vying for Lanco Amarkantak, which has two 300 MW operational facilities and two 600 MW units under construction. A 1,000 MW coal-based thermal power plant was purchased by Vedanta Ltd. last year for Rs 1,440 crore through the use of the Insolvency and Bankruptcy Code (IBC).

A few non-banking financial organisations (NBFCs), alternative investment funds (AIFs), and power corporations are among the other bidders for ITPCL.

A representative for IL&FS stated that the evaluation of bidder eligibility is ongoing. The suitors will next carry out their due diligence. Submitting binding bids and obtaining board and lender approvals come next, all of which are necessary to complete the deal before it is finalised.

Depending on how long it takes to obtain the necessary approvals, the complete sale procedure could take three to six months.

ITPCL recently finished restructuring its outstanding sustainable debt, totaling close to?4,700 crore, as part of the IL&FS restructuring process. It is currently submitting an application to the National Company Law Appellate Tribunal (NCLAT) to become a green entity, which would enable it to pay off all of its debt.

IL&FS Group has completed a disbursal of Rs 2,150 crore to senior secured lenders in ITPCL.

For feedback and suggestions, write to us at [e-mail]