Aptel has upheld the approval granted for transfer of 75.01% ownership of Prayagraj Power Generation Company (PPGCL) to Renascent Power Ventures, a 100% subsidiary of Resurgent Power Ventures Pte Ltd, but without any reduction of adopted tariff.
Prayagraj Power owns and operates a 1980 MW (3X660MW) coal based thermal power project in the state of UP and had become an NPA due to financial and operational stresses. Resurgent is a joint venture between Tata Power International Pte Ltd, ICICI Bank, Kuwait Investment Authority and State General Reserve Fund of Oman set up to acquire assets in the Indian Power Sector. Resurgent was selected as the successful bidder in resolving this stressed asset and had signed a Share Purchase Agreement with the Lenders for acquisition of 75.01% shares of PPGCL. Approval of the regulators was one of the pre-conditions for concluding this transaction.
Responding on this development, Praveer Sinha, CEO and MD of Tata Power said, “This judgment of APTEL is a positive development for power sector and specifically for resolution of stressed assets. The APTEL judgement protects economic viability of stressed assets post resolution, thus providing certainty for the bidders who wish to participate in the resolution process of stressed assets in the future.”
With this development, Resurgent will look forward to concluding this transaction at the earliest, completing the takeover of Prayagraj project, stabilizing and improving operations of the plant to bridge the growing demand-supply gap of power in UP State.
@EPC World Media