NCLAT Quashes NCLT Order: Green Light for JSW Energy in Rail Infrastructure Insolvency Bid
The Appellate Tribunal NCLAT overturned an NCLT order that halted the bidding process for debt-laden Raigarh Champa Rail Infrastructure, paving the way for JSW Energy to participate. The move aims to increase competition and ensure fair opportunities, with several companies vying for control of the infrastructure project.
- Country:
- India
The National Company Law Appellate Tribunal (NCLAT) has overturned a previous decision by the National Company Law Tribunal (NCLT) that restricted a fresh bidding process for the financially troubled Raigarh Champa Rail Infrastructure. The decision marks a significant relief for JSW Energy, enabling its participation in the insolvency resolution process.
JSW Energy, which had already procured the KSK Mahanadi Power, a major thermal power project in Chhattisgarh, saw its chance revitalized as NCLAT's ruling allowed a fresh invitation of Expression of Interest (EoI). This move is expected to bolster competition among prospective buyers and potentially lead to higher bids for the asset.
The NCLAT's decision comes after several rounds of judicial deliberations, as various companies including Adani Power, Jindal Power, and Vedanta, showed interest in acquiring the Raigarh Champa Rail Infrastructure. By reissuing Form G for EoI, NCLAT affirmed a transparent bidding process that encompasses all interested parties, ensuring a fair opportunity beyond JSW Energy's specific interests.
(With inputs from agencies.)
Google News