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GVK Power Lenders Restart Insolvency Process, Aim to Sell Assets Separately

Lenders to GVK Power and Infrastructure (GPIL), led by ICICI Bank, are restarting the company’s insolvency process to recover Rs16,000 crore in stuck bank funds. This time, lenders will seek separate bids for each of GPIL’s key assets—land parcels, power units, road projects, and a residual 1.7% stake in the Mumbai airport operator, now controlled by the Adani Group. The move follows a failed earlier attempt to sell the company as a whole due to non-compliant bids.

The revised strategy is based on the belief that an asset-wise sale will fetch better value, given the company’s diverse holdings and the limited interest in acquiring the entire business. Key assets up for sale include over 2,600 acres of freehold industrial land in Perambalur, Tamil Nadu; a 60% stake in the 330 MW Alaknanda hydropower project in Uttarakhand; stakes in toll roads including the Deoli-Kota and Jaipur expressways; and the small stake in the Mumbai airport.

Interested parties must submit expressions of interest by July 8, with varied earnest money deposit (EMD) requirements for different assets. This approach aligns with the Insolvency and Bankruptcy Board of India’s (IBBI) recent allowance for flexible asset-wise resolutions to expedite recoveries.