Jindal Power Strikes: Secures Bhadreshwar Vidyut in ₹500 Crore Deal

Jindal Power, led by billionaire Naveen Jindal, is set to acquire Gujarat-based thermal power producer Bhadreshwar Vidyut Pvt Ltd for nearly ₹470 crore under the corporate insolvency resolution process, sources told BusinessLine. The company has received approval from the Committee of Creditors (CoC) and a Letter of Intent.

The acquisition will be funded through internal accruals, with an additional ₹25-50 crore planned for capital expenditure. Jindal Power has not commented on the deal.

Formerly 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 plants were completed in 2015 and 2016.

The company entered insolvency proceedings in October 2022 after a petition by the State Bank of India. Its loan was classified as a non-performing asset (NPA) in December 2020. A debt restructuring effort that reduced liabilities from ₹1,200 crore to ₹850 crore failed, leading to insolvency.

Jindal Power secured the acquisition through multiple bidding rounds, including two challenge processes. In the final challenge round, Jindal Power was the highest and sole bidder. The transaction is expected to be completed within six months.

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

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

News by Rahul Yelligetti.