JSW suggests beating Adani's offer for a coal-fired power plant: Report

JSW suggests beating Adani's offer for a coal-fired power plant: Report

JSW suggests beating Adani's offer for a coal-fired power plant: Report

The battle for the 1,980-MW plant in central India, which is entangled in bankruptcy procedures, began when the minister of power made a request in November of last year for further private investment to keep up with the sharp increase in demand for electricity.

As India aims to enhance its investment in coal-fired electricity, two individuals with firsthand knowledge of the subject revealed that JSW Energy has planned to surpass the proposal made by billionaire Gautam Adani-led Adani electricity for a thermal power project. Desires.

The battle for the 1,980-MW plant in central India, which is entangled in bankruptcy procedures, began when the minister of power made a request in November of last year for further private investment to keep up with the sharp increase in demand for electricity.

The people, who sought to remain anonymous because they were not permitted to talk to the media, claimed that JSW Energy has written to India's bankruptcy court requesting permission to bid on the Amarkantak project.

Sources with knowledge of the letter, which was not previously publicized, claim that JSW has made a more competitive proposal than Adani's.

According to an official, "Adani Power looks to be the best contender so far with its revised offer."

The representatives were alluding to the company's proposal of 41 billion rupees ($494 million) submitted earlier this month, just before the bankruptcy court was about to provide final clearance to an additional bid from lenders for the project.

In December 2022, state-run lenders Power Finance Corp (PFC) and REC Ltd presented bids totaling Rs 30.2 billion, which was surpassed by Adani Power's proposal of Rs 29.5 billion.

A JSW Energy representative was silent in response to questions from Reuters, while Adani Power did not answer.

India's private investment in coal-based electricity started to decrease after 2018 as a result of the country's aggressive drive toward renewable energy sources and low demand.

The Amarkantak project will now only be open to those who made financial bids in a new auction that the bankruptcy court ordered.

According to two sources, Adani Power's updated offer will serve as the auction's starting price.

JSW was left out of the auction and is now requesting authorization from the court to take part in it. JSW submitted an expression of interest in the insolvency procedure but did not put a cash bid.

The partly operational project, situated in the central state of Chhattisgarh and owned by the insolvent industrial conglomerate Lanco, is up for bid; Reuters was unable to ascertain JSW's intended offer amount.

It is among a number of problematic privately owned coal-fired power plants that have been embroiled in bankruptcy procedures recently due to the owners' lack of funding and fuel sources.