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Adani Power's unsolicited offer of Rs 41 billion for Lanco Amarkantak Power will serve as the anchor bid in the proposed auction for the distressed thermal company. The sources mentioned that Reliance Industries and a consortium led by Power Finance Corporation (PFC) are the other two participants in the auction process. In January of the previous year, the PFC-led consortium's Rs 30.20 billion plan was approved by 95% of lenders, and the resolution professional subsequently sought approval from the National Company Law Tribunal (NCLT). Following this, Adani Power presented an unsolicited improved offer of Rs 36.50 billion in November. It was highlighted that Adani's latest offer exceeds the lender-approved plan by the PFC-led consortium by 36%. The resolution professional (RP) invited lenders to vote on whether to consider Adani's unsolicited offer, given that an application had already been filed with the NCLT. In late December, lenders unanimously agreed to consider the offer. RP Saurabh Kumar Tikmani, backed by KPMG, has applied to the NCLT seeking direction on conducting an auction with Adani's offer as an anchor bid. The tribunal is scheduled to hear the matter on January 16. In December 2022, during an auction, only the PFC-led consortium participated, offering Rs 30.20 billion. Adani and Reliance, who had initially offered Rs 29.50 billion and Rs 21.03 billion, respectively, did not participate, citing violations in the sale process. With all lenders, including PFC and REC, voting on a proposal to restart the auction process, it provides significant support to Adani. PFC and REC jointly hold 41% of the debt in the power company, and their consortium emerged as a successful resolution applicant. As per the Insolvency and Bankruptcy Code, debtholders are not prohibited from bidding for a company. A resolution can be blocked if anyone with over 34% debt opposes it; conversely, a plan is approved if 66% of lenders vote in favor. As 41% debtholders, PFC and REC wielded veto power in the resolution of the power producer. Lanco Amarkantak's first phase, fully operational, consists of two units of 300 MW each, while the second phase, under construction, comprises two units of 600 MW each.