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Arcil to take over Abhijeet Group's power plant in Jharkhand
The Asset reconstruction Company of India Ltd (Arcil), said it is in final stages of taking possession of a large power plant with the Abhijeet Group. The Abhijeet Group was setting up an 1100 megawatt (MW) coal-based power plant, Corporate Power, in Jharkhand, but could not complete it and also failed to service its loans.
Corporate Power had borrowed Rs 4,500 crore from a consortium of banks led by the State Bank of India.
Sources said Arcil paid only around 25% of the loan value to the bankers, which means banks have taken a huge 75% hair-cut from the deal.
Arcil aims to raise $300 million
Arcil bought the plant from lenders late last year. adding that he is expecting all approvals over the next few weeks. The move is as per the provisions in the Sarfaesi Act. The nearly 1,100 MW thermal power plant, situated in Latehar district of Jharkhand, was built in two phases but both of them are incomplete. The first phase is more than 75% completed and the second phase is 60% complete. The first phase can get commissioned in about two years.