New Delhi: State-run NHPC Limited has acquired Jal Power Corporation Ltd and its 120 MW Rangit-IV HEP, bringing the insolvency procedure for the company to a resolution. NHPC took over the company after the payment of resolution amount of Rs 165 crore into the lenders' designated account. Apart from Rs 165 crore, Rs 773.29 crore will be invested by the Central government into the project. The overall investment in the Rangit-IV hydropower project will be Rs 938.29 crore.
Power Finance Corporation (PFC), as the lead financial institution, and Punjab National Bank (PNB), as co-lender of the consortium, announced the completion of the resolution of the stressed asset – 4×30 MW Rangit-IV hydropower project (HEP) of Jal Power Corporation Ltd (JPCL) and the handing over of the project to NHPC.
The handing-over process was completed in the presence of PFC's CMD Ravinder Singh Dhillon, PFC's Director (Commercial) PK Singh, PFC's Director (Finance) Parminder Chopra, PFC's CVO Simmi R Nakra, NHPC's Director (Finance) Rajendra Prasad Goyal, NHPC's Director (Projects) Biswajit Basu, Resolution Professional (RP) Amit Jain and other senior officials from PFC, NHPC & PNB.
"With this successful transfer of the stressed asset to NHPC, a new lease of life is expected to be ushered in the project. NHPC Ltd is a leading CPSE for hydropower development in India. PFC has a long-standing relationship with NHPC Ltd and this will facilitate in further strengthening the relationship between the two entities," said PFC in the statement.
Jal Power Corporation Ltd is developing the 120 MW hydropower project in Sikkim. The company had been facing insolvency proceedings under the Corporate Insolvency Resolution Process (CIRP), which was initiated on April 9, 2019. The balance work of the project is to be completed within a period of 38 months.
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