The resolution professional (RP) for GVK Gautami Power, a 471 MW capacity gas-based power plant in Kakinada district of Andhra Pradesh, has sought expression of interest (EOI) from corporates, asset reconstruction companies (ARCs) and other such entities.

Setting out eligibility terms, the resolution professional said the corporates and individuals intending to apply need to have a minimum net worth of Rs 10 crore and above. For financial entities, including ARC and finance firms, the minimum assets under management or committed funds available for investment should be Rs 100 crore and above. 

The last date for submitting the resolution plans is 6 March, 2024. The participation of ARCs is subject to rules and regulations of the Reserve Bank of India. 

The financial creditor, Edelweiss Asset Reconstruction Company had filed a petition to initiate a corporate insolvency resolution process (CIRP) against GVK Gautami Power for allegedly defaulting on payment of a debt of Rs 1,447 crore. The National Company Law Tribunal (NCLT), Hyderabad bench, during its hearing on 20 October, 2023, initiated insolvency proceedings against the ailing power unit under The Insolvency and Bankruptcy Code (IBC).

The plant has not been operational since May 2015. However, the plant is duly maintained. The company had entered into a power purchase agreement (PPA) with Power Distribution Companies of Andhra Pradesh (APDISCOMs) in 1997. Furthermore, the corporate debtor had entered into several agreements with GAIL, Reliance Industries and others for fuel.