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The Resolution Professional of South East UP Power Transmission Company (SEUPTCL) has issued a letter of intent selecting Resurgent Power Ventures Pte as a successful resolution applicant under the Insolvency and Bankruptcy Code (IBC) proceedings.
The transaction is part of a stressed asset resolution process initiated by a resolution professional through a competitive bidding process. Adani Transmission and Power Grid Corp are understood to be the other bidders. Lenders of SEUPTCL had called for another round of bids since the earlier two rounds were inconclusive.
Resurgent Power will invest equity and raise debt in SEUPTCL at an enterprise value of over ₹6,000 crore to implement and commission the elements timely and turnaround the asset that will maximize value for all the stakeholders, Tata Power said in a statement.
SEUPTCL was incorporated as a special purpose vehicle formed by UP Power Transmission Company (UPPTCL) in 2009, to implement and operate the specified intra-state transmission system for 35 years. This was under a public-private partnership model on Build-Own-Operate-Maintain and Transfer (BOOT) basis. The company spiralled into financial troubles due to the bankruptcy of its Spanish owner Isolux Corsan.
SEUPTCL has about 1,500 km of transmission line and is divided into two groups. The Group-1 consists of six transmission element totalling 582 km of transmission lines (765 KV and 400 KV) and two 400 KV substation with a combined capacity of 1,630 MVA.
Group- 2 comprises eight transmission element totalling 953 km of transmission lines (765 KV and 400 KV) and three 400 KV substation with a combined capacity of 4,100 MVA.
Praveer Sinha, CEO and MD, Tata Power, 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 1,980 MW Prayagraj Power Plant and acquisition of System Strengthening Scheme in Northern Region NRSS XXXVI Transmission Limited.”
Resurgent Power is a joint venture based in Singapore where 26 per cent is held by Tata Power through its wholly-owned Singapore-based arm Tata Power International Pte. The balance 74 per cent is held by ICICI Bank and other investors of international repute.
The transaction shall be subject to customary approvals and conditions under IBC proceedings.
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