NCLT Approves ₹232 Crore Resolution Plan For Indrajit Power, Paving Way For Debt-Ridden Firm's Revival
· Free Press Journal
Mumbai: The National Company Law Tribunal (NCLT) has approved a Rs 231.9 crore resolution plan for Indrajit Power Private Limited, paving the way for revival of the debt-ridden power generation company.
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Yes Bank filed petition
The corporate insolvency resolution process (CIRP) against Indrajit Power was initiated in February 2024 on a petition filed by Yes Bank Limited.
During the CIRP, 12 expressions of interest were received, out of which three resolution plans were submitted. After multiple rounds of negotiations, the Evonith consortium’s plan emerged as the successful bid following e-voting by lenders in October 2025.
Rs 232 crore payout against Rs 510 crore claims
The approved plan proposes a total payout of Rs 231.9 crore against admitted claims of over Rs 510 crore. Secured financial creditors, with admitted claims of approximately Rs 482.67 crore, will receive Rs 224.5 crore. Operational creditors will be paid Rs 7.35 crore, while unsecured financial creditors will receive Rs 5 lakh.
The tribunal noted that the company’s financial distress stemmed from operational and external challenges, including economic slowdown, high leverage, and issues in operationalising the Nerad coal mine due to geological constraints and high sulphur content. The situation was aggravated after the Ministry of Coal invoked a bank guarantee furnished on behalf of the company.
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The resolution plan includes a provision for optional fund infusion of up to Rs 15 crore by the successful resolution applicant for operational improvements and working capital needs. A monitoring committee comprising representatives of financial creditors, the resolution applicant, and a monitoring agent will oversee implementation.
The tribunal also upheld the “clean slate” principle, ruling that all claims not included in the approved plan would stand extinguished. It further clarified that the plan would be binding on all stakeholders, including government authorities and guarantors.
With the approval, the moratorium imposed under Section 14 of the Insolvency and Bankruptcy Code has ceased, and the resolution professional has been directed to oversee the implementation and file periodic status reports.
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