(FE)
The National Company Law Tribunal (NCLT) approved Tata Steel’s Rs 805-crore bid for Bhushan Energy, a unit that belonged to the Delhi-based Singal family. Bhushan Energy would be Tata Steel’s second acquisition of an insolvent firm from the Singal family. In May last year, Tata Steel had acquired Bhushan Steel for Rs 35,200 crore through the Insolvency and Bankruptcy Code (IBC) route.
Bhushan Energy has around Rs 4,000-crore debt. Its liquidation value was seen at Rs 755 crore. On a petition moved by State Bank of India, insolvency proceedings against Bhushan Energy under Section 7 of the Code was admitted by the NCLT’s principal Bench on January 8, 2018.
Incorporated in 2005, Bhushan Energy is based in Dhenkanal, Odisha. It operates 485 MW of thermal power, developed in two phases, and supplies the entire generation to Bhushan Steel for use in its integrated steel plant, as per a power purchase agreement (PPA) signed between the two firms. Bhushan Energy reported a gross debt of Rs 2,336 crore in FY16 and posted a net loss of Rs 229 crore on revenues of Rs 622 crore in the same period, Capitaline data showed.
