Damodar Valley Corporation To Acquire Hiranmaye Energy With Rs 1,500 Crore Bid

The Damodar Valley Corporation has emerged as the highest bidder in the auction for the assets of Hiranmaye Energy Limited, with a winning bid of Rs 1,500 crore, according to a source.

This marks DVC's first acquisition, adding to its total installed capacity of around 6,700 MW, achieved through greenfield and brownfield expansions.

Hiranmaye Energy, formerly part of Indian Power Corporation Ltd, is a 300 MW thermal power generating company in Haldia, West Bengal.

The source told PTI that DVC was the highest bidder in the auction, which concluded on Monday, with an offer of Rs 1,500 crore, against a reserve price of Rs 1,300 crore.

Hiranmaye Energy has been under the Corporate Insolvency Resolution Process since January, following a plea filed by REC Ltd (Rural Electrification Corporation) with the Kolkata bench of the NCLT.

REC Ltd had filed a petition under the Insolvency and Bankruptcy Code (IBC) against Hiranmaye for defaulting on repayment of a Rs 2,500 crore debt. Both REC and the resolution professional declined to comment, stating that the finalisation process is going on and an official disclosure will be made in due course.

When contacted, DVC's Member (Finance), Arup Sarkar, said, "We understand our bid was the highest in the auction concluded on Monday."

He, however, declined to divulge further details.

The DVC bid was the highest in terms of net present value for recovery for the creditors.

Initially, eight bidders had shown interest in the Kolkata-based power company. Jindal Power, Sanjiv Goenka-promoted CESC, Hindustan Power, Shyam Sel and Power, Orissa Metaliks, and Rungta Mines were also in the race for the asset.

Hiranmaye Energy operates two units of 150 MW each, with a third 150 MW unit under construction, though currently in an abandoned stage.

The company's 300MW has a 25-year power purchase agreement with the West Bengal government and a long-term fuel supply agreement with Coal India.