State-owned Punjab National Bank (PNB) will sell its loan exposure of Rs 1,719.85 crore in KSK Mahanadi Power Company to asset reconstruction companies (ARCs), other banks and non-bank financiers.

The bank has set the floor price at Rs 752.28 crore. The sale will be done on a full cash basis, PNB said in a public notice.

“Prospective bidders shall expedite the process of due diligence exercise and we shall make all possible efforts to bring copies of the documents at one place, for verification of the prospective buyer, which shall be intimated separately, depending upon prospective buyer’s response," the lender said.

KSK Mahanadi Power Company was referred to the National Company Law Tribunal (NCLT) by Power Finance Corporation after it defaulted on repayments. The company was admitted to the Hyderabad bench of the insolvency tribunal on 3 October 2019. The lenders received a setback when their petition to consolidate the resolution process of KSK Mahanadi and KSK Water and Raigarh Champa Rail was rejected by the tribunal on 12 February.