Industry:Utility
Geography: Santaldih, West Bengal, India
Client: West Bengal Power Development Corporation Limited (WBPDCL)
Challenge:Sell the de-commissioned assets of the client at right price
Solution:Sealed Bid and Forward Auction
Results: The Assets were sold for INR 1,050 Mn, a premium of 23.50% over the expected price

The Client:

West Bengal Power Development Corporation Limited (WBPDCL) is a power generation and supply company owned by the Government of West Bengal. The main thermal power plants under WBPDCL are in Kolaghat, Bakreswar, Sagardighi, Santaldih and Bandel in West Bengal, India.

The idle asset under sale:

valuejunction received a mandate from WBPDCL for selling their 4 X 120 MW de-commissioned thermal power plant at Santaldih, in the state of West Bengal.

The Business Challenge:

1. WBPDCL made two unsuccessful attempts to sell their 4x120 MW decommissioned thermal power plant at Santaldih, West Bengal.
2. WBPDCL appointed valuejunction, the asset selling arm of mjunction in May 2014 to sell their decommissioned thermal power plant.

The Solution & Strategy

1. A thorough inspection was conducted and a detailed list of entire inventory available in the plant were taken.
2. A dedicated six member team was stationed at the site for over a month and the estimated sale value of the plant was arrived.
3. A pan India market campaign was made for the sale of these assets.
4. Eligible buyers were shortlisted and enrolled to valuejunction’s online platform.
5. A two-step strategy comprising of sealed bid, followed by forward auction was adopted.

Results & Achievements:

1. An online auction to sell the de-commissioned plant was conducted on 19-September 2014 where all shortlisted eligible buyers actively participated.
2. The best price of INR 1,050 Mn was arrived at, this was a premium of 23.50% over and above the client’s expected price.