Making inroads in the domestic power distribution, Tata Power has announced that its Singapore-based JV Resurgent Power Ventures has won the bid to acquire the stressed asset of South East UP Power Transmission Company Limited (SEUPTCL) through its resolution process under the Insolvency and Bankruptcy Code (IBC).
Tata Power did not disclose the bid offered by Resurgent Power Ventures. Tata Power holds 26% stake in the joint venture through its wholly-owned Singapore-based arm Tata Power International Pte Ltd. The balance 74% stake is held by ICICI and others.
“The resolution professional of South East UP Power Transmission Company Limited (SEUPTCL) has issued a letter of intent (LoI), selecting Resurgent Power Ventures Pte Ltd as a successful resolution applicant under IBC proceedings. The transaction is part of a stressed asset resolution process initiated by a resolution professional through a competitive bidding process (held earlier),” Tata Power said in a statement.
SEUPTCL was incorporated as a special purpose vehicle formed by UP Power Transmission Company Limited (UPPTCL) on September 11, 2009, to operate the specified intra-state transmission system for a period of 35 years under a public-private partnership model on a build-own-operate-maintain & transfer (BOOT) basis. The company has around 1,500 km of a transmission line.
Tata Power CEO and MD Praveer Sinha said, “Tata Power partnering with investors in Resurgent Power had bid for acquiring SEUPTCL and is delighted to have been selected as the successful bidder by the resolution professional for acquiring the project under IBC proceedings.”
“This asset will bring significant value to our transmission business and diversify the Resurgent Power portfolio after the successful turnaround of the 1980 MW Prayagraj Power Plant and acquisition of System Strengthening Scheme in Northern Region NRSS XXXVI Transmission Limited,” Sinha added.
The transaction will be subject to customary approvals and conditions under IBC proceedings, the company statement said.