RattanIndia Power in talks with lenders to overhaul Nashik plant’s Rs 7,000 crore debt

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The company is also in talks with Maharashtra Generation Company (Mahagenco) and a few other “reputable” investors for an equity stake in the asset, sources say.

After the successful debt overhaul of the 1,350 MW Amravati power plant, RattanIndia Power, backed by Aditya Birla ARC and Varde Partners, is in talks with a consortium of lenders led by PFC for the overhaul of around Rs 7 100 crore debt from its Nashik thermal power station in Maharashtra.

The company is also in talks with Maharashtra Generation Company (Mahagenco) and a few other “reputable” investors for an equity stake in the asset, sources say. A senior company official told FE that the company is seeking Rs 500 crore working capital and Rs 200 crore bank guarantee from its existing set of lenders to start up the 1,350 MW power station and sign the power contract. purchase of electricity (PPA) with the State of Maharashtra. Electricity Distribution Company Ltd (MSEDCL).

However, lenders were wary given the excess power generation and weaker demand scenario in the country over the past two years. The company was unable to pay the dues to its lenders due to which the asset became a non-performing asset on the lenders’ books.

“We are in talks with lenders based on the support of some high-profile investors to resolve the financial stress. We are also in talks with MahaGenco so that the plant which has been set up in Western Maharashtra with significant capital investment based on various assurances given by the state government can be made operational. Given the current demand for electricity, we are hoping for a quick resolution,” an official said.

Aditya Birla ARC backed by Varde Partners has already restructured the debt and taken a 15% stake in RattanIndia’s Amravati power plant. RattanIndia Nasik Power Plant’s major outstanding debt is Rs 7,107 crore.

The consortium of lenders comprises 7-8 banks led by Power Finance Corp (PFC) and includes Rural Electrification Corporation (REC), Axis Bank and Bank of India among others. RattanIndia Power on Friday announced a stand-alone net profit of Rs 104 crore in the October-December quarter of 2021, recording six-fold growth from the year-ago period on the back of strong MSEDCL consumption.

The standalone figures only include the operational Amravati power station and exclude the Nashik plant, which is owned by its subsidiary Sinnar Thermal Power. RattanIndia Power has no obligation towards the Nashik Power Plant debt. The company has paid Rs 2,000 crore in dues to the Amravati plant over the past two years and has an outstanding debt of Rs 1,950 crore, which the company expects to pay ahead of time given the ‘Annual Ebitda of around Rs 1,000 crore and regulatory recovery. assets of over Rs 4,000 crore in the near future.

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