India Inc VIPs in the battle for Rajasthan’s Chhabra Power Plant

Rajasthan's Chhabra Power Plant

Rajasthan is undoubtedly becoming one of the most preferable places for not only entrepreneurs but for big business people/companies too. Leading companies from around the country are looking forward to invest in Rajasthan in various sectors including education, skill development, smart city projects, production and many others. According to the latest reports, the leading conglomerates, biggest and most popular power producers, and marquee private equity players of India are coating up as possible suitors for the Chhabra Thermal Power Plant owned by the Rajasthan state government, sources told.

“Adani PowerBSE -1.45 %, JSW Energy, Piramal Enterprises, a jv between Tata Power and ICICI Ventures , NTPC & Macquarie Group are amongst initial suitors that have expressed a preliminary interest in the plant during a pre-bid meeting held earlier this month which was organized by Rajasthan Rajya Vidyut Utpadan Nigam Limited,” said one of the two sources cited above.

As per reports the Rajasthan Chhabra power plant has four operational units out of which two are of 250 MW each and the rest two are under construction units of 660 MW each. “Based on initial estimates, the project has an enterprise value of Rs 14,000 crores. The entire necessary infrastructure is in place including fuel tie-ups and statutory clearances,” added another source.

The Rajasthan state government has decided to set out the Chhabra power plant along with the Kalisindhi plant in a bid to reduce losses occurred. This decision was made in the month of February this year. “The Chhabra project had incurred losses earlier but is on its way to profitability. The state government is keen to infuse higher efficiency through the divestment process”, sources added.

The information has been exclusively given to ET NOW and when they asked further about the proposed divestment to companies like Tata Power, Piramal Enterprises, ICICI Ventures, and Macquarie, they denied passing any comment in response to any such queries. ET NOW is awaiting responses from some other companies including Adani Powe, NTPC and JSW Energy.

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