NTPC has won the bid for Avantha Group’s power plant in Madhya Pradesh, with a Rs 1,900-crore offer that was higher than Adani Group’s bid, according to a report by The Economic Times.
The state-run power company’s bid for the stressed unit was about two-and-a-half times higher than Adani Power’s offer of Rs 750 crore, sources told the paper.
Adani Power valued the 600 megawatt (MW) Jhabua plant at Rs 1.25 crore per MW. NTPC’s offer, on the other hand, valued the unit at Rs 3.2 crore per MW, the report said.
NTPC’s offer was also the highest bid in terms of price per MW, the report added. This is the first time NTPC has bid for a stressed project.
NTPC and Adani Power have not yet responded to requests for comment by The Economic Times.
The bid will help NTPC, which is facing insolvency proceedings, clear 38 percent of the Rs 5,000 crore it owes to lenders.
This is the first bid by NTPC under the Insolvency Bankruptcy Code (IBC) framework.The Jhabua power plant, built using equipment from Bharat Heavy Electricals (BHEL), has been facing troubles related to land acquisition and funding.