The state-owned power giant is looking at a collaboration with banks to rescue KSK Mahanadi Power, a holding company which houses the plant. The collaboration could take the form of a 50:50 joint venture (JV) between NTPC and the banks after the former infuses funds into the company, these executives said.
“It is still early days in the discussions,” an executive representing the banking consortium told ET on the condition of anonymity. “We are not getting a good price for the asset. If we enter into a JV then we can also enjoy the future upside from the project by holding on to an equity stake. This is an operating asset.”
State Bank of India is the largest lender to KSK Mahanadi Power with a ₹5,000 crore outstanding loan. It has also invoked the personal guarantees provided by KSK Mahandi Power’s former promoters S Kishore and KA Sastry to recover its dues.
NTPC did not respond to ET’s queries until press time.
Four parties-an arm of Canadian asset manager Brookfield,
, Tata and JSPL-had submitted expressions of interest to acquire the plant. However, banks are not confident of getting attractive offers based on preliminary discussions with them and have chosen to hold parallel discussions with NTPC for an alternate solution, according to sources.
