NTPC Limited has successfully acquired Jhabua Power Limited (JPL) for Rs 9.25 billion through corporate insolvency resolution process initiated by the National Company Law Tribunal (NCLT), Kolkata.
This is the first acquisition of a power asset by NTPC through NCLT route, a step forward in accomplishing NTPC’s long-term capacity targets. It is a unique resolution plan wherein NTPC has offered 50 per cent equity stake in JPL to the secured financial creditors while NTPC has retained all the management rights and control over the company. JPL is having an operational thermal power capacity of 1 x 600 MW located in Seoni, Madhya Pradesh. Post-acquisition of JPL, NTPC has become a 70+ GW company with total installed capacity of 70,064 MW. Power Finance Corporation Limited (PFC) is the largest lender to the project, which also has REC Limited, SBI, Axis Bank, Bank of India, LIC, PNB, UCO Bank and Union Bank of India among its lenders. The project ownership has been transferred to a consortium of NTPC, PFC, REC and other lenders.