NARCL places ₹285 crore anchor bid for BLA Power debt

National Asset Reconstruction Company Ltd (NARCL) has emerged as the anchor bidder for the stressed debt of BLA Power with an offer of Rs 285 crore, as lenders move to sell the exposure through the Swiss Challenge method, according to people close to the development.

The bid implies a recovery of nearly 38.6% of the admitted debt.

BLA Power had total outstanding dues of Rs 738.18 crore, as of December 31, 2025. The company, incorporated in 2006, operates a 90-megawatt coal-based thermal power plant in Gadarwara, Madhya Pradesh.


The sale is being run by BOB Capital, appointed as process advisor by Indian Bank, the lead lender, on behalf of a consortium of banks.

Spokespersons of NARCL and BOB Capital did not immediately respond to ET’s queries.

NARCL’s offer has been structured under the 15:85 model, with 15% paid upfront in cash and the balance issued as security receipts backed by a sovereign guarantee. Under the Swiss Challenge framework, competing bidders must submit offers at least 10.2% higher than the anchor bid, translating to a minimum increase of about Rs 29 crore. The auction will, therefore, begin at Rs 314 crore, with incremental bids in multiples of Rs 5 crore.

The last date for submission of expressions of interest is February 20 and the e-auction will be conducted on March 9.

BLA Power was originally set up as a thermal power project in two phases – a 43 MW Phase I and a 45 MW Phase II – with a total project cost of about Rs 442 crore, funded through a consortium of lenders led by Indian Bank. The project faced severe execution delays, cost overruns and inability to service debt, causing the account to slip into non-performing asset (NPA) status.

The industry has seen asset reconstruction companies step in to resolve power sector NPAs, with recovery rates often ranging between 25–45% of the loan amount depending on the underlying asset quality and project stage.