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NCLT approves NHPC’s acquisition plan for Jalpower Corporation Limited

Jalpower Corporation Limited (JPCL) is currently undergoing Corporate Insolvency Resolution Process (CIRP) which was initiated on April 09, 2019 vide an NCLT order

NHPC’s resolution plan for taking over Jalpower Corporation Limited (JPCL) gets NCLT approval
NHPC’s resolution plan for taking over Jalpower Corporation Limited (JPCL) gets NCLT approval

New Delhi: The Hyderabad bench of National Company Law Tribunal (NCLT) has approved NHPC’s resolution plan for taking over Jalpower Corporation Limited (JPCL). NCLT has uploaded this on its website on Thursday. JPCL was executing 120 MW Rangit Stage-IV Hydroelectric Project in Sikkim. The Company is currently undergoing Corporate Insolvency Resolution Process ('CIRP') which was initiated on April 09, 2019, vide order of NCLT.

NHPC Ltd a PSU under Ministry of Power had submitted its resolution plan to take over JPCL and was declared the successful resolution applicant by Committee of Creditors (CoC) on January 24, 2020. CoC approved resolution plan was filed by resolution professional with NCLT Hyderabad Bench on January 28, 2020.

NHPC now will make an upfront payment of Rs 165 Crore and the cost of the project is considered as Rs 943.20 Crore.

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Jalpower Corporation Limited is the second company after Lanco Teesta Hydro Power Ltd (LTHPL) to be acquired through the NCLT process by NHPC. NHPC completed the acquisition of Lanco Teesta Hydro Power Limited on October 04, 2019. The hydropower PSU paid Rs 877.74 crore to financial creditors and Rs 11.12 crore would go to operational creditors of Lanco Teesta Hydro Power.

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