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Informist, Thursday, Jun. 19, 2025

 

--NCLT OKs Adani Power's INR 40-bln resolution plan for Vidarbha Industries 

 

By Surya Tripathi

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal has approved Adani Power Ltd.'s INR 40-billion resolution plan for debt-ridden Vidarbha Industries Power Ltd. "... we are also satisfied that the resolution plan is in accordance with sections 30 and 31 of the IBC (Insolvency and Bankruptcy Code, 2016) and also complies with Regulations 38 and 39 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016," said the tribunal.

 

The tribunal noted that the proposed acquisition of Vidarbha Industries by Adani Power through this resolution plan does not require prior approval of the Competition Commission of India. "Hence, in our considered view, there is no impediment under the proviso to Section 30(4) of the Code in approving this resolution plan," said the tribunal. As far as the question of granting time to comply with the statutory obligations or seeking sanctions from governmental authorities is concerned, Adani Power is directed to do the same within one year as prescribed under the 2016 Code, said the tribunal.

 

Under the resolution plan, Adani Power will pay INR 2.93 billion as corporate insolvency resolution process cost. Further, the successful resolution applicant will give INR 37.06 billion to secured creditors against an admitted claim of INR 62.00 billion. The operational creditors will get INR 10 million from Adani Power under the resolution plan. 

 

Originally, Axis Bank and State Bank of India had filed insolvency petitions against Vidarbha Industries Power in 2020 and 2022 respectively. Subsequently, the original lenders assigned their debts to CFM Asset Reconstruction Pvt. Ltd. through an assignment agreement in 2023, as a result of which the latter became the petitioner in the insolvency case. In 2024, the tribunal admitted the petition by CFM Asset Reconstruction to start insolvency proceedings against Vidarbha Industries.  

 

The debt-ridden company has admitted dues of INR 67.54 billion. The fair value and liquidation value of Vidarbha Industries' assets were INR 17.19 billion and INR 12.64 billion respectively. 

 

Vidarbha Industries, a company incorporated in 2005, operates as a power distribution and power plants development company. It offers power generation, operation, maintenance, distribution and power sale services. It has a domestic coal-based project with a capacity of 600 megawatt at the Butibori Industrial Area in Nagpur, Maharashtra. 

 

Adani Power, incorporated in 1996, has over 20 years of experience in the power sector. The company commissioned its first thermal power unit in Mundra in 2009. The successful resolution applicant is a part of Adani Group. The tribunal noted that Adani Power, along with its affiliates and subsidiaries, is currently India's largest private power producer with a total installed thermal power capacity of 17,510 megawatt.

 

On Thursday, the shares of Adani Power Ltd. ended 2.6% lower at INR 536.50 on the National Stock Exchange.  End

 

Edited by Vandana Hingorani

 

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