- Tata Power, through Resurgent Power, had bid for acquiring 100 percent stake in NRSS XXXVI Transmission Project
- The NRSS XXXVI was incorporated as a special purpose vehicle (SPV) to establish and operate transmission system for System Strengthening Scheme in Northern Region
New Delhi: Tata Power subsidiary Resurgent Power Ventures has been selected as the successful bidder by PTC India Financial Services Ltd for the acquisition of 100 percent stake in NRSS XXXVI Transmission Project. In an official statement released on Saturday, Tata Power said, “The lenders of NRSS XXXVI Transmission Limited (NRSS XXXVI), PTC India Financial Services Ltd (PFS), have issued a Letter of Intent (LOI) selecting Resurgent Power Ventures Pte Ltd (Resurgent) as Lender’s Nominee to acquire 100 percent shareholding in NRSS XXXVI. The transaction is a part of stressed transmission asset resolution process initiated by PFS through a competitive bidding process.”
Acquisition will help Tata Power expand transmission biz: MD
Speaking on the development, Dr Praveer Sinha, CEO & MD, Tata Power said, “In line with our aspiration to expand our transmission business, Tata Power, through Resurgent Power, had bid for acquiring 100 percent stake in NRSS XXXVI Transmission Project. We are delighted to have been selected as the successful bidder by PTC India Financial Services (PFS). This asset fits in our overall strategy to maximise shareholder value through growth and sound investments. After successful turnaround of 1,980 MW Prayagraj Power, this asset will add further value to the Resurgent portfolio.”
The transaction shall be subject to customary approvals and conditions.
NRSS XXXVI transmission project
The NRSS XXXVI was incorporated as a special purpose vehicle (SPV) to establish and operate transmission system for System Strengthening Scheme in Northern Region (NRSS-XXXVI) along with LILO of Sikar-Neemrana 400kV D/C line at Babai on Build-Own-Operate-Maintain (BOOM) basis.
NRSS XXXVI has three elements consisting of a total length of 153-Km transmission line spread across the states of Uttarakhand, Rajasthan and Haryana. Out of this, a small portion of 1.5 km of transmission line and 2 bays of 400 KV are completed while work for balance 151 km of lines and 4 bays of 400 KV is underway.
‘Resurgent Power will invest equity, raise debt in NRSS XXXVI’
“Resurgent will invest equity and raise debt in NRSS XXXVI at a total enterprise value of approximately Rs 470 crore to implement and commission the above projects and turnaround the asset that will maximise value for all the stakeholders,” said the statement.
Resurgent Power is a joint venture (JV) based out of Singapore and is held 26 percent by Tata Power through its wholly owned Singapore-based subsidiary. The balance 74 percent of Resurgent Power is held by ICICI Bank and other investors such as Power Platform Limited and Kuwait Investment Authority.
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