6 March 2019: Deloitte Touche Tohmatsu India, on behalf of IDBI Bank, has invited expressions of interest (EoIs) for the sale of a 30-megawatt (MW) solar power project in Patan, Gujarat, owned and operated by Lanco Solar (Gujarat) (LSGPL), according to a public notice.
The plant’s total debt outstanding as on October 8, 2018, stood at `346 crore. IDBI is the only lender to the project.
“IDBI Bank (IDBI or the lender), being the sole lender of the company has been authorised on behalf of the company to supervise the process of divestment of business undertaking on its own or through the authorised agent and it has appointed Deloitte Touche Tohmatsu India (DTTILLP), to act as the process advisor in relation to the aforesaid process,” Deloitte said in the notice. The last date for submission of EoIs is March 15.
LSGPL is a fully-owned subsidiary of Lanco Infratech, which is being liquidated under the corporate insolvency resolution process (CIRP). Lanco Infratech had been referred to the insolvency tribunal by IDBI Bank after the Reserve Bank of India (RBI) in 2017 named it among the 12 largest non-performing assets (NPAs) that banks were to resolve through the insolvency route.
In October, Care Ratings downgraded LSGPL to D, or default grade, from B, citing delays in the servicing of debt obligations by the company. “The delay in servicing of debt obligations by LancoSolar (Gujarat) follows the lower than envisaged generation levels at the project site leading to stretched liquidity position of the company. The generation was affected largely due to heavy monsoon in the area. Further, the generation from Chadiyana plant was affected due to some damage to the transmission line,” the rating agency said.
The company held a debt service reserve account (DSRA) of `16.93 crore as on March 31, 2018, and this was gradually utilised to repay the principal amount. “An amount of `5.54 crore remains unpaid by the company,” Care Ratings analysts wrote.
Bankers have been working on resolutions for a number of stressed power projects. Last month, banks met to discuss seven-eight projects and arrive at a final resolution with regard to Jaiprakash Associates-promoted Prayagraj Power Generation Company’s 1,980 MW Bara unit and SKS Chhattisgarh’s 1,200 MW Binjkote plant. Both are expected to be resolved by the end of the March quarter.