National: The resolution professional of South East UP Power Transmission Company (SEUPTCL) has issued a Letter of Intent (LOI) selecting Resurgent Power Ventures (Resurgent) as a successful resolution applicantunder IBC proceedings. The transaction is part of a stressed asset resolution process initiated by a resolution professional through a competitive bidding process.
SEUPTCL was incorporated as a special purpose vehicle formed by UP Power Transmission Company (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 and Transfer (BOOT) basis.
SEUPTCL has approx. 1500km of transmission line and is divided into two groups. The Group-1 consists of 6 numbers of transmission element totalling 582km of transmission lines (765KV and 400KV) and 2 numbers of 400KV substation with a combined capacity of 1630MVA and the Group-2 comprises 8 numbers of Transmission Element totalling 953km of transmission lines (765KV and 400KV) and 3 numbers of 400KV substation with a combined capacity of 4100MVA.
Resurgent Power will invest equity and raise debt in SEUPTCL at a total enterprise value of more than Rs6000crore 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 and 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 1980MW Prayagraj Power Plant and acquisition of System Strengthening Scheme in Northern Region NRSS XXXVI Transmission."
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. The balance 74 percent of Resurgent Power is held by ICICI and investors of international repute.
The transaction shall be subject to customary approvals and conditions under IBC proceedings.
