The Hyderabad-headquartered Konaseema Gas Power Ltd has announced a sale under liquidation of its 445 MW combined cycle power plant located in the East Godavari District of Andhra Pradesh.
This forms part of the liquidation of the estate by the liquidator Under Section 35 (f) of the Insolvency and Bankruptcy Code (IBC), 206, with Regulation 33(1) of the Liquidation Process Regulation, 2016.
The sale will be done through the e-auction platform bankauctions.in, with an unlimited extension of five minutes each provided to bidders.
The combined cycle power plant is located in Devarapalli Village that falls under Ravulapalem Mandal (Division) in the East Godavari District.
Movable and immovable assets at the factory situated in Devarapalli Village in East Godavari District’s Ravulapalem Mandal include land measuring nearly 121.92 acres (main plant), buildings and plant machinery. Plant machinery comprises 2 Siemens V94.2 gas turbines of 139.44 MW each, 2 heat recovery steam generators (HRSGs), 1 Russian made LMZ steam turbine of 166.60 MW, Crompton Greaves transformers, Kirloskar circulating water (CW) pumps, motor for CW pumps manufactured by the Brazilian company WEG, an IDC tower by L&T ECC and a demineralisation (DM) plant.
Besides, the company is also offering for sale a 1,387 sq. ft flat in Kolkata, 4 acres near the combined cycle power plant site and 35 acres at South Yanam, East Godavari District.
The commercial operation date (COD) of the combined cycle power plant was till June 30, 2010, and it generated power up to April 2013.
A tender notice issued by the company gives the reserve price as Rs 410 crore (Rs 4.1 billion), with interested bidders required to deposit Rs 10 crore (Rs 100 million). The bid increase amount has been kept at Rs 1 crore (Rs 10 million)
The sale of assets is subject to approval by the National Company Law Tribunal (NCLT), Hyderabad, which includes approval for the interim approval (IA) filed seeking exclusion up to September 30, 2020, because of the Covid-19 pandemic.
Brief particulars and other details of the company including the status of the power purchase agreements are available in the virtual data room.
Konaseema Gas Power was established to capitalise on discovery of natural gas in the Krishna-Godavari (KG) Basin of Andhra Pradesh. When completed, the company’s natural gas-based combined cycle power plant was the largest in the private sector in the region.