State-run power major NTPC has acquired Jhabua Power Limited (JPL) through the Insolvency and Bankruptcy Code (IBC) process.
It is the first acquisition of a power asset by NTPC through NCLT route, a step forward in accomplishing NTPC’s long-term capacity targets.
Alvarez & Marsal completed the corporate insolvency resolution process (CIRP) Jhabua Power Limited. “This was a marquee transaction on many fronts including it being the first acquisition by NTPC using the IBC and that lenders will own 50% of Jhabua Power’s equity going forward. We could deliver a significant turnaround in the performance of this 600 MW coal-fired power plant during the CIRP period with EBITDA increasing 2.5X," said Venkataraman Renganathan, managing director, Alvarez & Marsal India, who ran the CIRP.
The shareholder agreement was signed between NTPC, JPL and Secured Financial Creditors today in New Delhi.
It is a unique Resolution Plan wherein NTPC has offered 50% equity stake in JPL to the secured financial creditors while NTPC has retained all the management rights and control over the company.
Jhabua Power Limited (JPL) is having an operational thermal power capacity of 1 x 600 MW located in Seoni, Madhya Pradesh. Post-acquisition of JPL, NTPC has become a 70+ GW company with total installed capacity of 70,064 MW.
With a target set to achieve installed capacity of 130 GW by 2032 from a diversified portfolio, NTPC has been exploring various opportunities for capacity expansion through both organic and inorganic routes.
