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Arcil takes over Abhijeet Group’s power plant in Jharkhand

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Arcil, a leading asset reconstruction company of the country, while giving details of the moveable and immovable assets with Corporate Power would now go for auctioning of the Non-Performing Assets (NPA), in which the project has been reduced to.

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Total 613.0832 acres of land located at different villages of Chandwa block besides, all machineries, plant, parts, accessories, furniture, vehicles, raw material stocks, cash flow, bank accounts, insurances etc belonging to the beleaguered project meant to generate power from its coal-fired station have been acquired.

“The property has been acquired on June 1 which is the beginning of legal process. Usually it takes more than a year to complete. After that we would publish a notice inviting bidders to purchase the assets while setting up a base price. The highest bidder would get the property,” said an Arcil official-based in Mumbai.

State Bank of India, State Bank of Hyderabad, and other subsidiaries of the SBI, including private banks had given loans to Corporate Power which has now swelled over and above Rs 5,214.68 crore and was demanded by the lenders from the promoters a year ago.

 

Subsequently, the proposed power plant, located in the Maoist-affected area in Latehar district, struck with ‘coalgate’, the reported scam that had hit the country during the previous regime. It cost Abhijeet its Chitarpur coal block allocated to the company following the Supreme Court order of mass lease scraping. While the plant came to a grinding halt, the bank loans also turned into bad. The official though did not disclose the actual revaluation of the project after restructuring.

In the meantime, Manoj Jaiswal in his recent visit to Jharkhand in May had requested Chief Minister Raghubar Das to take interest in the project and revive it.

“The discussion is going on but any final settlement has not taken place as of now. Once the restructuring is done and when so many parties are involved now how the same firm can be given access to the same plant is a major question,” said a senior official in the Energy Department.

Though now defunct, construction at Chandwa of Latehar possess good infrastructure and assets but reports also suggest that most of the constructed structures, raw materials and machines have been stolen from the site. “The plant has been reduced virtually to rubbles. It would require a lot of investment to bring it back to normal,” said a company official.

The Government, on its part, had also involved consultancy firm Mecon over a year ago with the task to conduct feasibility of the shelved power plant. Mecon is yet to come up with its report. The report holds importance since it would decide the fate of the badly debt ridden plant vis-à-vis State Government is concerned.

“The Mecon was appointed consultant to study the assets and state of the plant standing at Chandwa. We are yet to get the report. Once the report is there we can decide what to do about it,” said JBVNL Managing Director Rahul Purwar who is holding additional charge of Energy Secretary currently.

Input from dailypioneer

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