Resurgent Power Ventures Pte Ltd (Resurgent) has been selected as the lender’s nominee to acquire 100% shareholding in a troubled power transmission project spread across three states of Haryana, Rajasthan and Uttarakhand.
Resurgent is a Singapore-based joint venture in which 26% shareholding is held by Tata Power through its wholly-owned Singapore-based subsidiary.
The balance 74% of Resurgent Power is held by ICICI Bank, Power Platform Ltd and Kuwait Investment Authority.
“In line with our aspiration to expand our transmission business, Tata Power through Resurgent Power had bid for acquiring 100% stake in NRSS XXXVI Transmission Project. We are delighted to have been selected as the successful bidder by PTC India Financial Services (PFS). This asset fits in our overall strategy to maximize shareholder value through growth & sound investments. After successful turnaround of 1980 MW Prayagraj Power, this asset will add further value to the Resurgent portfolio,” said Praveer Sinha, CEO & MD, Tata Power
The lender of NRSS XXXVI Transmission Ltd, PTC India Financial Services Ltd (PFS), has issued a Letter of Intent (LOI) selecting Resurgent Power Ventures Pte Ltd (Resurgent) as Lender’s Nominee to acquire 100 per cent shareholding in NRSS XXXVI, Tata Power said in a statement.
According to the statement, the transaction is a part of the stressed transmission asset resolution process initiated by PFS through a competitive bidding process.
The NRSS XXXVI was incorporated as a special purpose vehicle to establish and operate transmission system for System Strengthening Scheme in Northern Region (NRSS-XXXVI) along with LILO of Sikar-Neemrana 400kV D/C line at Babai.
NRSS XXXVI has three elements consisting of a total length of 153 km transmission line spread across the states of Uttarakhand, Rajasthan and Haryana.
Out of this, a small portion of 1.5 km of transmission line and 2 bays of 400 KV are completed while work for balance 151 km of lines and 4 bays of 400 KV is underway.
Resurgent will invest equity and raise debt in NRSS XXXVI at a total enterprise value of approx. ₹470 crore to implement and commission the above projects and turn around the asset that will maximize value for all the stakeholders.
Source: Mint