NTPC outbids Adani Group for Avantha Group's Jhabua thermal power plant
The Avantha Group has received a good bid as it was an operational project
NTPC has outbid the Adani Group for the Avantha Group’s 600 MW Jhabua thermal power plant in Madhya Pradesh, with Rs 1,900 crore offer. NTPC’s offer is also the highest on a per MW basis so far to buy out a stressed asset in the power sector.
The Avantha Group has received a good bid as it was an operational project built with equipment from the Bharat Heavy Electricals (BHEL), but stressed due to lack of working capital. NTPC’s bid values the unit at Rs 3.2 crore per MW against the construction cost of Rs six crore for new projects.
The Jhabua thermal power plant faced land acquisition and funding issues leading to time and cost overruns.