NTPC Prepares to bid for 1,800 MW Thermal Power Project in Chhattisgarh

NTPC is preparing to bid for the 1,800 megawatt (MW) KSK Mahanadi thermal power project in Chhattisgarh. Power Finance Corporation (PFCL) is the lead lender for this project.

The company will be bidding for this project as the union power ministry is pursuing government companies to pick assets for both private and state-owned companies. The project is currently undergoing a corporate insolvency resolution process (CIRP) at the National Company Law Tribunal (NCLT).

In November 2023, the Ministry of Power urged the central and state public sector power generating companies (gencos) and state power/energy departments to pick projects which are undergoing insolvency proceedings.

With the aim to increase power demand, the power Ministry is looking at a quicker turnaround of these plants to enhance power supply. Further, gencos may be encouraged to participate in the CIRP of power assets, which are of strategic and commercial significance to the capacity addition plans of the states concerned.

The Ministry in its advisory listed four assets, of which KSK Mahanadi was one. The project was operational and had power purchase agreements with three states- Andhra Pradesh, Tamil Nadu and Uttar Pradesh. The plant received coal linkage under the SHAKTI scheme of the Centre but had to import coal due to a shortfall.