Infrastructure Leasing & Financial Services (IL&FS) has invited expressions of interest by 11 February for its Tamil Nadu power plant as well as the captive port and Indonesian coal mines that serve the energy project.
All abovementioned assets on the block are worth around Rs 10,000 crore ($1.4 billion at current exchange rate), said reports.
In the past, cash-strapped IL&FS has invited bids for its securities business, road projects, renewable energy and education assets.
The operational 1,200 MW thermal power plant, with potential for additional 2,700 MW capacity, is located in Cuddalore, nearly 175 km south of Chennai. The project, housed under IL&FS Tamil Power Company Ltd, has a captive port for import of coal to the plant, which is held under Porto Novo Maritime. The coal is imported from mines in Indonesia owned by IL&FS Maritime Offshore, Singapore.
Arpwood Capital and JM Financial have been tasked with selling the assets in question.
IL&FS Group, which has a debt of Rs 91,000 crore ($12.9 billion), has been trying to sell assets to repay debt after several defaults forced the government to overhaul its management last year.
In early January, the firm received more than 30 expressions of interest for its subsidiary IL&FS Transportation Networks Ltd's domestic road business.
Also, the group's private equity arm, IL&FS Investment Managers Ltd, has reportedly got takeover interest from 10 to 12 companies.
IL&FS is a quasi-government-owned firm, which has Life Insurance Corporation of India (LIC) and State Bank of India (SBI) cumulatively owning almost 40% of the company. Japan’s Orix Corporation has a 23% stake and Abu Dhabi Investment Authority holds 12% equity in the company.
Other Indian lenders holding stakes include Bank of Baroda, Punjab National Bank, and Union Bank of India.
