NCLT orders liquidation of Essar Power Jharkhand Limited

The NCLT has ordered the liquidation of Essar Power Jharkhand Limited (EPJL) after the sole bidder for the company refused to furnish a performance bank guarantee after bidding for the power plant. EPJL had planned to set up a 1,200 MW coal-based plant in Latehar district of Jharkhand in 2008. The plant is only about 45 per cent complete till date, and has been tagged as difficult to resolve by the government. EPJL, which has a total debt of around Rs 56 billion, was admitted into insolvency in 2017 on a plea moved by ICICI Bank for defaulting on a payment of Rs 36.3 billion.

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