Ind Bharath moves insolvency petition against TN power utility
In a novel approach by a private sector company to collect dues from a public sector utility, the Ind Bharath Group has filed a corporate insolvency petition against the Tamil Nadu Generation and Distribution Corporation (Tangedco) to recover a debt of ₹720 crore.
According to media repoprts, three companies of the Hyderabad-based group – Arkay Energy (Rameswaram Ltd), Ind Bharath Power Gencom and Ind Bharath Thermal Power Ltd – which have supplied power to Tangedco, have approached the National Company Law Tribunal under Section 9, Rule 6 of the Insolvency and Bankruptcy Code, 2016, to recover dues totalling ₹720.54 crore, including principal and interest for the period between May 2011 and May 2016. At the hearing, the Tribunal granted the utility time till September 7 to file a counter.
The three companies have committed over 640 MW of power capacity to Tangedco to feed the grid. They had participated in tenders floated by the utility for supply of power.
Arkay Energy operates a 150 MW gas-based power plant; Ind Bharath Power Gencom has a 3×63 MW thermal plant; and Ind Bharath Thermal a 2×150 MW thermal plant. All are in Tuticorin, in southern Tamil Nadu.
Ind Bharath has pointed out in its representation that Tangedco has for the first time in recent years projected a profit of ₹2,000 crore for 2017-18, after entering the Centre’s financial restructuring scheme, UDAY. This would put it in a position to repay dues. It has also pointed out that its own creditors are seeking repayment but its funds have been locked up with Tangedco. Ind Bharath is fighting cases filed by its creditors demanding payment.