MUMBAI: Beleaguered infrastructure lender IL&FS has put its Tamil Nadu power assets on the block. A power plant in Tamil Nadu, a port and a coal mine in Indonesia — together estimated at around Rs 10,000 crore, are on sale.
The infrastructure lender has invited expression of interest (EOI) from potential bidders, which will help the board in price discovery. The sale process is expected to be completed in the next financial year. So far IL&FS has invited bids for its securities business, road projects, renewable energy and education assets.
The power project is located in Cuddalore, nearly 175km south of Chennai. The project includes an operational 1200 MW thermal power plant, with further expansion potential of additional 2700 MW — housed under IL&FS Tamil Power Company (ITPCL). The project has a captive port for direct import and transfer of coal to the power plant which is held under Porto Novo Maritime. The coal is imported from Indonesia from IL&FS Maritime Offshore, Singapore — a group company that owns the coal mines.
When contacted, IL&FS spokesperson Sharad Goel confirmed that EOI are being invited for the said asset as part of the resolution plan outlined by the board. Arpwood and JM Financial will assist in the transaction, which is subject to necessary approvals, he added.
ITPCL is a SPV incorporated under the energy platform — IL&FS Energy Development Company. The SPV has plans to have 3180 MW generating capacity through thermal power plants in Kothattai, Ariyagoshti and Villianallur revenue villages of Chidambaram Taluk, Cuddalore District. Phase I of the project is for 1200 MW comprising of 2 units of 600 MW each. The first unit commenced operations in September 2015 while the second started in April 2016. Phase II will have three units of 660MW.