The bankruptcy court has admitted GVK Power (Goindwal Sahib) Limited for corporate resolution and insolvency proceedings based on a petition filed by Axis Bank.
This is the second company of the GVK group, after GVK Industries to be admitted for insolvency proceedings. The company has a debt of around Rs 30 billion. GVK Power operates two thermal power plants in Punjab of 270 MW each. It has a power purchase agreement (PPA) with Punjab State Power Corporation Limited. GVK Power has tied up with Coal India Limited for the supply of coal under Shakti Policy. In October 2021, the state government terminated GVK’s PPA on the grounds that its charges a higher tariff. The cancellation of PPA resulted in a series of litigations between the company and the state government.