Aban Offshore in talks to sell thermal power projects to Nuziveedu Power: report

Aban Offshore, India's largest offshore drilling contractor, is in talks to sell its  thermal power projects to Nuziveedu Power, in order to reduce debt.

Citing banking sources briefed on the matter, The Times of India today reported that the Chennai-based company,  a major contractor to ONGC, is planning to sell its two coal-fired projects in Tamil Nadu and Orissa with a combined potential of 2,200 MW.

The sale may fetch Aban more than Rs550 crore, or upwards of $100 million, said the paper.

Aban , which has diversified into construction, offshore and onshore drilling, alternate energy, IT services, hospitality and tea plantations, is sitting on a debt pile of  Rs270-crore, according to a recent report from  global investment banking firm Macquarie.

Nuziveedu Power, part of the Rs3,500 diversified Hyderabad-based NSL Group, had last year explored a plan of selling itself and had hired a financial advisor to sell its power assets estimated to be then worth around Rs1,000 crore.

Nuziveedu's power assets includes a 1,320 MW coal-based project in Nagapattinam, Tamil Nadu, and another similar capacity project in Orissa. Both the upcoming power plants of Aban's are in the same state as Nuziveedu's power assets.

Aban has already acquired the land for its 1,200 MW North Chennai Power Company in Tamil Nadu, while it is preparing to start construction of its1,030MW power project at Angul in Orissa under the Mahanadi Aban Power Company.