16 May 2019: RattanIndia Power announced that the applications filed by the consortium of lenders led by Power Finance Corporation (‘PFC’), against the Company and its wholly owned subsidiary Sinnar Thermal Power (earlier known as RattanIndia Nasik Power ), in the NCLT, New Delhi, pursuant to and in terms of the Reserve Bank of India’s Circular on Resolution of Stressed Assets – A Revised Framework dated 12 February 2018 bearing reference no. DBR.No.BP.BC.101/21.04.048/2017-18 (’12 February Circular’), has been withdrawn by PFC pursuant to the 12 February Circular being quashed by the recent judgment of the Hon’ble Supreme Court of India.
The Company is actively engaged with the lenders and is taking key steps to alleviate and address the challenges being faced by it, which include:
- Amravati Thermal Power Plant: The Company is working with the lenders for a one-time settlement (‘OTS’) of its outstanding debts, which is currently at an advanced stage of discussions with the Lenders.
- Nasik Thermal Power Plant: A resolution plan is being worked on jointly with the lenders. Moreover, on 30 April 2019, Maharashtra State Electricity Development Corporation has issued a Letter of Intent for the purchase of 507 MW power from the Nasik plant. The company anticipate executing the Power Purchase Agreement (‘PPA’), in the near future.