Axis Bank has put up for sale Lanco Kondapalli Power that owns and operates gas-based power plants as they failed to pay dues. Without mentioning the name of the company Axis Bank called Expression of Interest (EoI) for the sale of three gas-based power projects with a combined capacity of 1476 MW. Sources close to the development said the power projects are of Lanco Kondapalli, which was once a subsidiary of beleaguered Lanco Infratech Limited.
They said the lenders have to find a suitable resolution for their debts before September 16, lest the creditors approach the National Company Law Board for a resolution. “If the lenders cannot find a solution before the deadline set by the Supreme Court (September 16 2018), then the matter has to be referred to NCLT for a resolution. The NCLT in turn may appoint a Resolution Professional and give time for a resolution plan,” sources told PTI.
Lanco Kondapalli a 368 MW gas-based plant has been operational since October 2000. Phase-II 366 MW has been operational since December 2009 and Phase-III 742 mw has been operational since January 2016.
While Phase-I is operating with limited gas supplies, Phase II and III are not producing any power due to lack of gas supplies. Lanco officials were not available for comment.
Axis Bank sought bids from parties who had net worth of Rs 300 crore on March 2017 or later. It wanted financial investors with Rs 1,000 crore worth of Assets Under Management or Rs 500 crore committed funds available for investment in future on the plants.
Lanco Kondapalli Power Limited was earlier a subsidiary of Lanco Infratech Limited, which is currently under insolvency proceedings. Lenders of Lanco Kondapalli acquired 51% stake in the company in April 2017 through Strategic Debt Restructuring (SDR).
The company has a debt of over Rs 3,000 crore.