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Jindal Power, backed by Indian billionaire Naveen Jindal, is set to acquire Gujarat-based thermal power company Bhadreshwar Vidyut Pvt Ltd for approximately INR 500 crore under the corporate insolvency process. Bhadreshwar Vidyut, previously known as OPGS Power Gujarat, operates two coal-based power plants in Kutch. The acquisition, approved by the Committee of Creditors (CoC), involves a resolution plan valued at nearly INR 470 crore. The transaction will be financed through internal accruals, with an additional investment of INR 25-50 crore allocated for capital expenditure. The acquisition is expected to be completed within the next six months, further strengthening Jindal Power's presence in the sector.
Jindal Power, promoted by Indian billionaire Naveen Jindal, is set to acquire Gujarat-based thermal power generation company Bhadreshwar Vidyut Pvt Ltd for nearly INR 500 crore, according to sources familiar with the matter. The acquisition is being undertaken as part of the corporate insolvency resolution process, enabling Jindal Power to establish a foothold in Gujarat. Advertisement
Jindal Power had received approval from the Committee of Creditors (CoC) and the Letter of Intent recently. The resolution plan is valued at approximately INR 470 crore.
The acquisition will be funded through internal accruals, with Jindal Power also planning an additional investment of INR 25-50 crore towards capital expenditure in the newly acquired entity.
Bhadreshwar Vidyut, previously known as OPGS Power Gujarat, is a special-purpose vehicle established by the OPG group. The company operates two coal-based power plants of 150 MW each in Kutch, developed at a project cost of INR 1640 crore with a debt-equity ratio of 75:25. The first unit was completed in February 2015, followed by the second unit in February 2016.
Bhadreshwar Vidyut was admitted to the National Company Law Tribunal (NCLT) in Chennai in October 2022 after a petition was filed by the State Bank of India. The company's loan was classified as a non-performing asset (NPA) in December 2020, leading to a debt restructuring attempt that reduced the debt to INR 850 crore from the original INR 1200 crore. However, lenders rejected the restructuring proposal, forcing the company into corporate insolvency.
Jindal Power emerged as the highest bidder after multiple rounds of bidding. The selection process involved two separate challenge processes. Jindal Power secured the highest bid in both the first and second challenge processes. Jindal Power aims to complete the acquisition within the next six months.
A greenfield project of a similar scale would have cost a capital expenditure of INR 2500 crore for Jindal Power. Thus, this is a great deal for Jindal power. However, challenges regarding the planned gradual phase-out of coal-based energy remain.
Presently, the company operates projects in Raigarh (3400 MW), Nellore (600 MW) and Dhule (300 MW).
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