The National Company Law Appellate Tribunal has rejected an appeal challenging the NCLT’s approval of Sarda Energy & Minerals’ ₹1,950 crore bid for SKS Power Generation.
The appeals were made by the three of the unsuccessful resolution applicants Torrent Power, Jindal Power and Vantage Point Asset Management.
The judgment reaffirms the authority and discretion of the Committee of Creditors in the insolvency resolution process.
The NCLAT in its judgment said the law gives paramount importance to CoC decision taken in commercial wisdom to approve a Resolution Plan and Supreme Court has outlined the limited jurisdiction of NCLT and NCLAT to interfere with it.
The ruling comes after the Mumbai bench of the NCLT approved SEML’s resolution plan on August 13.
SKS Power’s amalgamation with SEML became effective on September 3 after the latter filed a certified copy of the NCLT order with the Registrar of Companies.
SKS has coal-based power plant of 600 MW, with ready infrastructure for another 600 MW. The acquisition of SKS Power will result in substantial synergies as it allows it to use the coal available with SEML and use other infrastructure facilities.
SEML has operational hydropower assets of 141.8 MW which includes projects of 4.8 MW at Uttarakhand, 24 MW at Gullu, Chhattisgarh, 113 MW at Sikkim and a 24.9 MW at Rehar, Chhattisgarh (to be operational in CY24). In addition, 74.9 MW hydropower capacity under execution.
Similarly, SEML has an operational thermal power capacity of 161.5 MW while 2x300 MW capacity is under SKS.
On the minerals and metals front, SEML has captive iron ore mines capacity of 1.5 million tonne per annum in Chhattisgarh and Maharashtra. The company’s coal mines in Madhya Pradesh and Chhattisgarh have capacity of 2.34 mtpa.
SEML is also setting up a 50 MW solar power plant for captive use and is expected to be operational by FY25-end.
SEML’s steel products and ferro business include a capacity to make 9 lakh tonne of pellets, which are sold domestically and also used for captive consumption. The company has 3 lakh MT capacity for making billets and 2.5 lakh MT capacity for wire rods.