M&A

M&A

JSPL acquires Odisha-based power plant from Monnet Power for Rs.410-Cr

Business Line  

Jindal Steel and Power Ltd (JSPL) has acquired the under-construction power plant of Monnet Power under the insolvency resolution process for INR 410 crore. The payment was funded from internal accruals. Located near Malibrahmani in Angul (Odisha), the 1,050-MW power plant is expected to be operational over the next 12 months. The coal-fired power plant was offered on a slump sale basis in an auction on November 2, at a reserve price of INR 400 crore. In February 2020, following bankruptcy proceedings instituted by IDFC Bank, Monnet Power — a subsidiary of Monnet Ispat — invited bids for sale of its power plant. The plant had two units of 525 MW capacity each. Monnet Power owed around INR 6,000 crore to a consortium of lenders, including State Bank of India and Punjab National Bank. The firm went for liquidation in December 2018. The company will use the plant to supply power to its steel plants at Angul.