State Bank Of India has invited bids from asset reconstruction companies and other financial institutions to sell one NPA account KSK Mahanadi Power Company, the total outstanding against the company is over Rs 4,100 crore. “With reference to the Bank’s policy on sale of financial assets, as per regulatory guidelines, we hold the account (KSK Mahanadi) for sale to ARCs/Banks/NBFCs/FIs,” SBI said in an auction notice.

The e-auction of KSK Mahanadi is scheduled to be held on December 31, 2021.

With fund based outstanding of Rs 3,815.04 crore and non-fund based outstanding of Rs 286.83 crore, the company’s total loan outstanding According to SBI, the amount from SBI as on date is Rs 4,101.87 crore.

The country’s largest lender has set a reserve price of Rs 1,423.17 crore for selling this non-performing asset (NPA).

SBI said interested parties can check the property with immediate effect after submitting the letter of interest by December 6.

A former subsidiary of KSK Energy Ventures, KSK Mahanadi ceased to be a branch since May 2018 following an invocation of pledged shares by a consortium of lenders on default of loan repayment by the power company.

At the time, KSK Energy Ventures said that KSK Mahanadi constituted 80 per cent of the group’s total power generation capacity (3,600 MW out of 4,472 MW being operated/developed under the company) in the past 10 years and the lenders’ The action will adversely affect KSK Energy Ventures and its various stakeholders.

KSK Mahanadi Power The company is under the Corporate Insolvency Resolution Process.