State-owned power giant NTPC in Monday announced the acquisition of 600-MW Jhabua Power Plant for Rs 925 crore, which is its first such deal through insolvency proceedings.

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"NTPC Ltd... Has successfully acquired Jhabua Power Limited (JPL) through Corporate Insolvency Resolution Process initiated by National Company Law Tribunal, Kolkata, (NCLT)," a company statement said.

This is the first acquisition of a power asset by NTPC through NCLT route, a step forward in accomplishing NTPC's long-term capacity targets, it stated.

Shareholders agreement was signed between NTPC, JPL and Secured Financial Creditors on Monday in New Delhi.

Under the resolution plan NTPC has offered 50 per cent equity stake in JPL to the secured financial creditors while NTPC has retained all the management rights and control over the company.

JPL is having an operational thermal power capacity of 600 MW located in Seoni, Madhya Pradesh. After the acquisition of JPL, NTPC has become a 70 GW-plus company with total installed capacity of 70,064 MW.

With a target set to achieve installed capacity of 130 GW by 2032 from a diversified portfolio, NTPC has been exploring various opportunities for capacity expansion through both organic and inorganic routes.

Venkataraman Renganathan, Managing Director, Alvarez & Marsal India, who ran the Corporate Insolvency Resolution Process (CRIPS), said in a separate statement, "This was a marquee transaction on many fronts, including it being the first acquisition by NTPC using the IBC (Insolvency and Bankruptcy Code) and that lenders will own 50 per cent of Jhabua Power's equity going forward. We could deliver a significant turnaround in the performance of this 600 MW coal fired power plant during the CIRP period with EBITDA increasing 2.5X."