Reliance Industries, Adani Power Set For Face-Off At Lanco Unit Auction

Following Lanco's 51st committee of creditors meeting, the lenders decided to go in for the auction, with Adani's ₹ 2,950 crore bid as the price.

Reliance Industries, Adani Power Set For Face-Off At Lanco Unit Auction

RIL and the Adani Group will also compete for the ownership of Future Retail and SKS Power.(File)

Mukesh Ambani's Reliance Industries Ltd (RIL) is set to compete with Gautam Adani-owned Adani Power for an auction of a distressed thermal unit of Lanco Amarkantak Power on November 25. 

RIL, according to a report by Economic Times, had emerged as the highest bidder in the first round of resolution plan submission, followed by Adani Power.

The auction will also see the participation of a consortium of state-owned Power Finance Corp. and REC Ltd.

The PFC and REC combo, which also hold 41 per cent of the company's debt, finished at number three during the first round.

The Lanco Unit auction will be the first time RIL and Adani Power come into direct competition.

The report added that for the second round of resolution, Adani Power made an offer of ₹ 2,950 crore, including ₹ 1800 crore upfront payment, and the remaining amount would have been paid over the next five years.

While Reliance made a bid of Rs 2000 crore in an upfront payment plan, the PFC-REC pairing offered ₹ 3,870 crores over the next 10-12 years.

Following Lanco's 51st committee of creditors meeting, the lenders decided to go in for the auction, with Adani's ₹ 2,950 crore bid as the price.

If RIL's bid is successful, it will mark the company's foray into the coal-based power generation business, in which Adani power is already a participant.

RIL and the Adani Group will also compete to own Future Retail and SKS Power. They have already submitted expressions of interest for these two companies.

Lanco runs thermal power generation plans in Chhattisgarh. The first phase of the unit on the Korba Champa state highway has been commissioned, and the second phase is under construction.

Featured Video Of The Day

India's GDP Growth To Slow Down To 6-6.8%: Economic Survey
.