NTPC acquires Jhabua Power Ltd through Insolvency and Bankruptcy resolution route
India’s largest power generating company NTPC ltd. has acquired the 600 MW Jhabua Power limited company of the bankrupt Gautam Thapar owned Avantha Group through Corporate Insolvency Resolution Process initiated by National Company Law Tribunal, Kolkata, (NCLT).
IMPORTANT FACTS -
- Jhabua Power Limited (JPL) has an operational thermal power capacity of 1 x 600 MW located in Seoni, Madhya Pradesh.
- It is the first asset that NTPC is taking over through the National Company Law Tribunal (NCLT) route. The estimated deal size is Rs 1,830 crore.
- A consortium of secured lenders led by Axis Bank approached the NCLT after JPL failed to repay the loan it had taken.
- Under the deal which was worked out between the lenders, NTPC and JPL, NTPC will hold 50 percent equity shares of the JPL and will also have all the management rights and control over the company.
- NTPC will pay Rs 1830 crore to the lenders of JPL and also will offer 50 % share in the JPL to the lenders.
ADDITIONAL INFORMATION -
- The NTPC which was earlier known as National Thermal Power Corporation of India is owned by the Government of India. It was set up in 1975.
- The Vindhyachal Thermal Power Station in the Singrauli district of Madhya Pradesh, with an installed capacity of 4,760MW, is currently the biggest thermal power plant in India. It is a coal-based power plant owned and operated by NTPC.
- The total installed commercial capacity of the company was 69454 MW before the JPL deal.
Headquarters: New Delhi
Chairman and Managing Director: Gurdeep Singh
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