Billionaire Gautam Adani is considering submitting a bid for the coal-fired power plants owned by troubled Indian tycoon Anil Ambani, which are currently being auctioned by an Indian bankruptcy court, according to sources familiar with the matter.

Adani, who recently raised $2.8 billion in capital, may face stiff competition for Vidarbha Industries Power Ltd., the company operating the 600-megawatt generation facilities in central India, said the sources, who requested anonymity as the plans are confidential.

Reliance Power Ltd., owned by Ambani, is also contemplating making an offer for the asset in an effort to regain control of the company, one of the sources added. Discussions are ongoing, and both Adani and Reliance Power could choose not to proceed with formal bids, the sources said. Reliance declined to comment, while an Adani Group spokesperson had no immediate comment.

If Adani successfully acquires the plants, they would join his expanding portfolio of coal power projects as the conglomerate strives to recover from a damaging attack by short-seller Hindenburg Research in January, which at one point wiped out over $150 million from the group's market value.

The auction of Vidarbha Industries to another company would also signify further decline for Ambani, a former billionaire who has been locked in battles with creditors for years and engaged in a bitter succession feud with his elder brother Mukesh, Asia's wealthiest man.