JSW Energy on Thursday submitted a revised offer to acquire a majority stake in debt- ridden Prayagraj Power Generation Company (PPGCL), an arm of Jaiprakash Power Ventures, sources privy to the developments told CNBC-TV18.
According to sources, offer by JSW Energy is over Rs 6,000 crore.
This move comes a day after the Prayagraj's lenders issued a letter of intent to Resurgent Power Ventures, a company backed by the Tata Group and ICICI Ventures.
The company owes over Rs 11,000 crore to 17 lenders led by SBI, PNB, BoI, IOB, IDBI Bank, Indian Bank, LIC, and L&T Infrastructure Finance among others apart an external commercial borrowing of $115 million from IIFCL of Britain.
The company is not part of the NCLT accounts, but the holding company Jaiprakash Associates is part of the 28 large accounts mentioned in the second RBI list.
The 17-lender consortium holds 89.47 per cent in PPGCL and the balance is with Jaiprakash Associates, the promoter entity.
In July 2016, the lenders had invoked strategic debt restructuring (SDR) of Jaiprakash Power but the company stopped servicing its term loans from February 2017.
Debt on its book may be refinanced based on discussion/ proposal submitted by the prospective investors, according to the expression of interest put out by SBI Caps.
The company has a 1,980-mw coal based super-critical thermal power project at Bara near Allahabad, which had achieved commercial operation date in May 2017.
Due to inadequate working capital and increase in interest liability on the working capital loans, the company had reported a net loss of Rs 546 crore in FY17 which in the first half year of the current fiscal jumped to Rs 629 crore.
(With inputs from PTI)