Jindal Power, a unit of India's Jindal Steel & Power Ltd, has submitted a 140 billion rupees ($1.69 billion) bid for a coal-based power plant in the eastern region, two sources familiar with the development told Reuters.
The company has submitted a financial bid for the KSK Mahanadi plant that is in insolvency proceedings, and which is being eyed by billionaire Gautam Adani's Adani Power and Anil Agarwal's Vedanta Ltd among others, a source aware of the matter said.
The 1,800-megawatt power plant, built by KSK Energy Ventures, is one of many distressed coal-fired private power stations mired in insolvency proceedings in recent years as owners did not have fuel supplies and the funds to complete them.
The plant was admitted for insolvency proceedings in October 2019 but the court has not called financial bids since then.
The plant has cash reserves of 120 billion rupees ($1.45 billion) from operations, and total debt claims of 320 billion rupees ($3.85 billion).
"Jindal Power has submitted an unsolicited bid to the authorised resolution professional for KSK Mahanadi Power project in Chhattisgarh," one of the sources, who works for the government said. The sources did not want to be quoted as they were not authorised to speak to media.
A Jindal Power spokesperson declined to comment. Sumit Binani- the resolution professional appointed for the KSK Mahanadi power project by the insolvency court - did not respond immediately to queries sent by Reuters.
The unsolicited bid shows Indian private companies' renewed interest in coal-based power plants.
The share of private investment in India's coal-based power dwindled after 2018 due to lower demand and an ambitious thrust by the federal government on renewable energy. However, coal-based power plants are back in focus as India expects demand to cross 260-gigawatts during peak hours in summer this year.
India will operate new coal-fired power plants with a combined capacity of 13.9 gigawatts until December this year, the highest annual increase in at least six years.