Europe’s largest renewable energy company Statkraft has submitted a resolution plan for Lanco Mandakini Hydro Energy which is undergoing bankruptcy proceedings at the National Company Law Tribunal (NCLT), it said in a company statement.
“Given hydropower’s importance to India’s grid, we are keen on developing stressed hydropower projects in India, including the Mandakini project. Statkraft’s plan is pending approval from NCLT,” Statkraft said in response to queries from ET seeking comment about its interest in the Lanco unit.
The Norway government-owned company did not disclose the financial details of its resolution offer.
This is Statkraft’s second offer to the creditors of the Lanco unit, according to sources. Its first offer was rejected because it was conditional and was found to be too low. Sources placed the value of the first offer at below ₹130 crore. Its current offer is said to be four times higher.
An Axis Bank-led group of creditors is trying to recover loans of ₹1,300 crore that they had disbursed to Lanco Mandakini Hydro Energy. They have unanimously approved Statkraft’s debt resolution plan.
The Lanco unit owns an unfinished hydropower plant near the pilgrim town of Kedarnath in Uttarakhand. The plant was partially destroyed by flash floods in 2013. The unit subsequently defaulted on bank loans.
Statkraft entered the Indian power market through its subsidiary SN Power in 2004 when it acquired 49% of the shares in Malana Power Company (MPCL). Statkraft was then the first foreign investor in the Indian hydropower sector.
Its energy generation portfolio in India includes two operating hydropower assets, one hydropower asset under construction and one solar power project also under construction. All three hydro assets are in Himachal Pradesh. The solar project is in Tamil Nadu. It is also involved in energy trading. mGlobally, Statkraft operates in 17 countries. It has been in the clean energy business since 1895.
