New Delhi: Tata Power's Singapore-based Joint Venture (JV), Resurgent Power Ventures Pte Limited, has secured the Letter of Intent (LoI) to acquire UP's South East UP Power Transmission Company Limited (SEUPTCL) under the Insolvency Bankruptcy Code (IBC) proceedings, said the company on Wednesday. "The resolution professional of South East UP Power Transmission Company Limited (SEUPTCL) has issued a Letter of Intent (LOI) selecting Resurgent Power Ventures Pte Limited (Resurgent Power) 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," a statement released by Tata Power said.
SEUPTCL was incorporated as a special purpose vehicle formed by UP Power Transmission Company Limited (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 model on Build-Own-Operate-Maintain & Transfer (BOOT) basis.
SEUPTCL has approximately 1,500 Kms of power transmission line and is divided into two groups. The Group-1 consists of six transmission element totalling 582 Km Of Transmission Lines (765 KV & 400 KV) and two 400 KV Substation with a combined capacity of 1,630 MVA. And the Group- 2 comprises eight Transmission Element totalling 953 Km of Transmission Lines (765 KV & 400 KV) and three 400 KV Substation with a combined capacity of 4,100 MVA.
Resurgent Power will invest equity and raise debt in SEUPTCL 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 maximise value for all the stakeholders.
Speaking on the development, Dr Praveer Sinha, CEO & 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 out of Singapore and is held 26 percent by Tata Power through its wholly-owned Singapore-based subsidiary, Tata Power International Pte Limited. The balance 74 percent of Resurgent Power is held by ICICI Bank Limited and investors of international repute. The transaction shall be subject to customary approvals and conditions under IBC proceedings.
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