SKS Power’s dormant plant restarts operations under NTPC

Reportedly, SKS Power Generation (Chhattisgarh) Limited has become the first dormant power plant to start operations following a directive by the central government.

NTPC Limited has been tasked with operating and maintaining the plant until lead lender Bank of Baroda finds a buyer. The company is undergoing a corporate insolvency and resolution process since April 2022 and owes lenders led by Bank of Baroda a total of Rs 18.90 billion. The plant stopped production earlier this year due to financial difficulties. The plant has 25 years of fuel agreement with South Eastern Coalfields Limited. As part of the agreement with NTPC, 300 MW generation has already been started and another 300 MW will start in a month. The company has 200 MW of power purchase agreement already with Rajasthan, Bihar and Chhattisgarh and the rest will be sold in the open market which will help reduce power shortages in India.