DEAL ALERT!! Jindal Power Set to Acquire Bhadreshwar Vidyut for Rs 500 Crore

Jindal Power Limited (JPL), a key entity of the Naveen Jindal Group, is poised to acquire Gujarat-based Bhadreshwar Vidyut for nearly Rs 500 crore after its bid secured approval from the company’s lenders. The Committee of Creditors (CoC) overseeing the insolvency resolution of the debt-laden thermal power producer voted in favor of JPL’s plan, marking a significant step in the company’s expansion strategy.

Bhadreshwar Vidyut, previously OPGS Power Gujarat, operates two 150 MW coal-based power plants in Kutch. The company plunged into financial distress, with debts initially at Rs 1,200 crore, later restructured to Rs 850 crore. After lenders rejected a recast plan, it entered insolvency proceedings under the National Company Law Tribunal (NCLT) Chennai in October 2022, triggered by a State Bank of India petition. JPL emerged as the top bidder in a competitive multi-round process, committing to fund the acquisition through internal accruals and earmarking Rs 25-50 crore for post-acquisition upgrades.

Sources indicate JPL outbid rivals in the final round, with the resolution plan now awaiting NCLT approval under the Insolvency & Bankruptcy Code (IBC). The acquisition, expected to conclude within six months, will boost JPL’s thermal power capacity from 4,300 MW to 4,600 MW, strengthening its foothold in Gujarat’s energy sector. Industry experts view this as a lifeline for Bhadreshwar Vidyut, enhancing regional energy stability.

This move aligns with Jindal Group’s broader vision, which includes scaling up to 12 GW of renewable energy capacity by 2030, alongside storage and green hydrogen projects. As JPL integrates Bhadreshwar Vidyut, it reinforces its dual focus on thermal and renewable energy, positioning itself as a key player in India’s evolving power landscape. An email to the company for comment went unanswered.