Reliance Power offers Rs 1,200 cr cash settlement to VIPL Lenders

25 May 2023 CW Team

Reliance Power, a subsidiary of Reliance Infrastructure, has put forward a lucrative proposal to settle the debt of its subsidiary, Vidarbha Industries Power Ltd (VIPL). The company has offered a one-time settlement (OTS) amounting to Rs 1,200 crore to the lenders of VIPL, which include prominent financial institutions like Axis Bank, SBI, Bank of Baroda, PNB, Canara Bank, and Bank of Maharashtra.

As of March 31, 2022, VIPL carries an outstanding loan of approximately Rs 2,200 crore. Reliance Power's OTS offer stands out due to its commitment to pay the entire amount in upfront cash. To solidify this proposal, Reliance Power has secured the support of Varde Partners, an investor based in Singapore, which has vested interests in another company within the Reliance group, Reliance Infrastructure Ltd.

VIPL operates a coal-based power project in Nagpur with a substantial capacity of 600 MW. Previously, CFM Asset Reconstruction Pvt Ltd, headquartered in Ahmedabad, made an all-cash offer of Rs 1,120 crore to VIPL's lenders. However, CFM ARC is now under scrutiny by the Reserve Bank of India (RBI) and the Income Tax Department for alleged malpractices and business misconduct.

Following CFM ARC's offer, National Asset Reconstruction Company Ltd (NARCL) stepped in and proposed an amount of Rs 1,150 crore to VIPL's lenders. However, NARCL's offer includes only 15 percent payable in upfront cash, while the remaining sum will be disbursed through interest-free installments over the course of five years. The net present value of NARCL's offer is estimated to be merely Rs 850 crore.

In contrast, Reliance Power's OTS offer of Rs 1,200 crore in full cash payment presents a significantly higher and more attractive alternative for the lenders of VIPL. This offer ensures a prompt resolution to the debt issue and provides the lenders with a favourable outcome.

Infrastructure Transport

12 Mar 2026

Kavach 4.0 Commissioned on Delhi–Mumbai and Delhi–Howrah

"Kavach version four has been commissioned on 1,452 route km, covering the high density Delhi–Mumbai and Delhi–Howrah corridors. The rollout included laying 8,570 km of optical fibre, installation of 1,100 telecom towers, deployment of trackside equipment over 6,776 RKm and establishment of 767 station data centres. Trackside implementation has been taken up on 24,427 RKm covering Golden Quadrilateral, Golden Diagonal and High Density Network sections. The programme aims to strengthen signalling and train protection on key routes.Kavach is an indigenously developed automatic train protecti..

Railways Advance Kalyan–Murbad Line And Mumbai Capacity Expansion

"Indian Railways is advancing multiple rail infrastructure projects in Maharashtra, including the sanctioned Kalyan–Murbad new line and sizable investments under the Mumbai Urban Transport Project and the Mumbai–Ahmedabad High Speed Rail project. The Kalyan–Murbad 28 km new line has been sanctioned at Rs 8.36 billion (bn) on a 50:50 cost-sharing basis with the Government of Maharashtra and has been declared a Special Railway Project for land acquisition; proposals covering 214 hectares are at various stages of acquisition. Budgetary outlay for projects falling fully or partly in Maharash..

Parliamentary Panel Flags Funding Gaps in Heavy Industries

"The Department-Related Parliamentary Standing Committee on Industry (Rajya Sabha) presented its 332nd report on the Demands for Grants 2026-27 of the Ministry of Heavy Industries (MHI). Figures converted from crore and lakh are expressed in million (mn). The Budget Estimates 2026-27 for the Ministry stand at Rs 79,399 mn against a projected requirement of Rs 94,843.2 mn, a shortfall of about 16 per cent, with revenue at Rs 79,370.8 mn and capital compressed to Rs 28.2 mn from Rs 5,020 mn.The committee flagged recurring BE-to-RE compression and declining revised estimate utilisation, and calle..