Gas-based power plants have started going into liquidation and are expected to fetch no more than 10% of their value. The country has 25 GW gas-based plants set up at an estimated Rs 1 lakh crore investment, which are either stranded or operating at economically unviable capacities.
The 445 MW Konaseema Gas Power Ltd is the first gas-based plant to go into liquidation on going-concern basis while other similar projects remain stressed due to non-availability of fuel. The project, set up with around Rs 4,000 crore investment, was admitted in NCLT in December 2018. Only one financial bid of Rs 154 crore, including land value of Rs 80 crore, was received by the committee of creditors. The bid has not been accepted and the plant is under liquidation as a going concern.
Similarly, other such projects like Lanco Kondapalli which are in NCLT are unlikely to draw bidders in this environment, industry executives said.