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Indian billionaire Naveen Jindal’s company, Jindal Power, is set to acquire Gujarat-based thermal power generation company, Bhadreshwar Vidyut Pvt Ltd, for approximately ₹500 crore through the corporate insolvency process. This acquisition will provide Jindal Power with a foothold in Gujarat. The acquisition is expected to be funded through internal accruals, with an additional investment of ₹25-50 crore for capital expenditure in the acquired entity. Bhadreshwar Vidyut, formerly OPGS Power Gujarat, operates two 150 MW coal-based power plants in Kutch with a project cost of ₹1640 crore and a debt-to-equity ratio of 75:25.

The company was admitted to the National Company Law Tribunal (NCLT) in Chennai in October 2022 after a petition by the State Bank of India. The company’s loan was classified as a non-performing asset (NPA) in December 2020, and a debt restructuring was carried out, reducing the debt from ₹1200 crore to ₹850 crore. However, the lenders rejected the recast, leading to the company being placed under corporate insolvency.

Jindal Power emerged as the highest bidder through multiple rounds of bidding, beating other contenders in two separate challenge processes. The company plans to complete the acquisition within six months and has already received the approval of the Committee of Creditors (CoC) and the Letter of Intent. This acquisition will add to Jindal Power’s existing projects in Raigarh, Nellore, and Dhule, making it a significant player in the thermal power generation sector.