The resolution professional of South East UP Power Transmission Company Ltd (SEUPPTCL), has issued a letter of intent selecting Resurgent Power Ventures Pte Ltd as a successful resolution applicant under IBC proceedings.
The transaction, subject to customary approvals and conditions under IBC proceedings, is part of a stressed asset resolution process initiated by a resolution professional through a competitive bidding process.
SEUPPTCL was incorporated as a special purpose vehicle formed by UP Power Transmission Company Ltd (UPPTCL) on September 11, 2009, to implement and operate the specified intra-state transmission system for a period of 35 years under public-private partnership (PPP) model on Build-Own-Operate-Maintain & Transfer basis.
The project
SEUPPTCL has around 1,500 km of transmission lines and is divided into two groups.
- Group-1 consists of six transmission elements totaling 582 km of 400kV and 756kV transmission lines, and two 400kV substations with a combined transformation capacity of 1,360 MVA.
- Group-2 includes eight transmission elements aggregating 953 km of 400kV and 765kV transmission lines, and three 400kV substations with a combined capacity of 4,100 MVA.
Over Rs.6,000 crore of investment
Resurgent Power will invest equity and raise debt in SEUPPTCL at a total enterprise value of more than Rs.6,000 crore to implement and commission the elements timely and turnaround the asset that will maximize value for all the stakeholders.
Will bring significant value
Speaking on the development, Dr. Praveer Sinha, CEO & MD, Tata Power, said“ Tata Power partnering with investors in Resurgent Power had bid for acquiring SEUPPTCL 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 Ltd.”
Tata Power JV
Resurgent Power is a joint venture based out of Singapore and is held 26 per cent by Tata Power through its wholly-owned Singapore-based subsidiary Tata Power International Pte Ltd. The balance 74 per cent of Resurgent Power is held by ICICI and investors of international repute.
Second case
According to information available with T&D India, this is the second instance of Tata Power involving itself with the TBCB-based power transmission business. The first case was in November 2021, when Tata Power (through Resurgent Power) acquired the ailing TBCB asset “NRSS XXXVI Transmission Ltd” from its original owner Essel Infraprojects, under an asset resolution process. (Read more).
Insolvency
It may also be mentioned that the transmission scheme envisaged under SEUPPTCL is an intrastate project involving 765kV lines in Uttar Pradesh. It was then considered amongst the early instances of 765kV lines at the state level. The project was originally awarded to Spain-based Isolux Corsan. However, the when the company filed for insolvency worldwide, the Indian project met with financial challenges and was then referred for corporate insolvency resolution. At one stage, the Uttar Pradesh state government had also expressed interest in acquiring the project. Power Finance Corporation (PFC) has major debt exposure to the project.
Featured photograph for representation only
