Jindal Power to Acquire Bhadreshwar Vidyut in Gujarat for ₹500 Crore.

Jindal Power, promoted by billionaire Naveen Jindal, is set to acquire Gujarat-based thermal power producer Bhadreshwar Vidyut Pvt Ltd for nearly ₹500 crore under the corporate insolvency resolution process, sources told BusinessLine.

The company has secured approval from the Committee of Creditors (CoC) and received a Letter of Intent. The final resolution plan stands at approximately ₹470 crore, according to sources. Jindal Power did not respond to queries on the deal.

The acquisition will be funded through internal accruals, with Jindal Power planning an additional ₹25-50 crore investment in capital expenditure.

Background of Bhadreshwar Vidyut

Formerly known as OPGS Power Gujarat, Bhadreshwar Vidyut is a special-purpose vehicle promoted by the OPG Group. It operates two coal-based power plants of 150 MW each in Kutch, developed at a total project cost of ₹1,640 crore with a 75:25 debt-equity ratio. The units were completed in 2015 and 2016, respectively.

The company was admitted to the National Company Law Tribunal (NCLT) in October 2022 following a petition by the State Bank of India. Bhadreshwar Vidyut’s loan was classified as a non-performing asset (NPA) in December 2020, and a debt restructuring attempt in which its debt was reduced to ₹850 crore from ₹1,200 crore failed, pushing it into insolvency.

Competitive Bidding Process

Jindal Power emerged as the highest bidder through multiple rounds of bidding, including two challenge processes. The second challenge round was a final opportunity for bidders, where Jindal Power remained the sole participant and the highest bidder. The acquisition is expected to be completed within the next six months.

A greenfield project of similar capacity would have cost Jindal Power around ₹2,500 crore in capital expenditure.

Jindal Power currently operates projects in Raigarh (3,400 MW), Nellore (600 MW)—acquired in 2022 for ₹300 crore—and Dhule (300 MW).

HBL