National, September 17, 2022: Pursuant to the Letter of Intent (LOI) issued by the resolution professional of South East UP Power Transmission Company Limited (SEUPPTCL), and approval of the resolution plan by the honourable National Company Law Tribunal, Allahabad ("NCLT") vide order dated June 15, 2022, Resurgent Power Ventures (Resurgent Power) has completed the acquisition of SEUPPTCL and has settled the debt of all existing creditors as per the terms of the Resolution Plan. The transaction was part of a stressed asset resolution process run by Resolution Professional under the supervision of its Committee of Creditors through a competitive bidding process under the Insolvency and Bankruptcy Code, 2016.
SEUPPTCL 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 the public-private partnership model on Build-Own-Operate-Maintain & Transfer (BOOT) basis. Pursuant to the implementation of the Resolution Plan, SEUPPTCL has become a wholly owned subsidiary of Resurgent Power.
SEUPPTCL has approximately 1,500 km of Transmission Line (765 kV and 400 kV) and 5 substations (765 kV and 400 kV). The total scope of the project was divided into two groups:
The transaction entailed payment for one-time settlement of outstanding debt and purchase of equity shares for a total consideration of Rs 3,251 crore and payout of the existing cash balance of SEUPPTCL as outlined in the Resolution Plan. In addition, Resurgent Power will invest equity and raise debt in SEUPPTCL for the completion of Group 2. When completed, the total enterprise value will be approx. Rs 6,500 crore. The transaction has been funded through a mix of shareholder funds brought in by Resurgent Power and loans drawn down from the State Bank of India.
Resurgent Power is a Joint Venture based out of Singapore co-sponsored by Tata Power and ICICI Venture and has other global reputed institutions as investors. It was set up to acquire stressed assets in the Indian Power Sector. Tata Power International (TPIPL) (a wholly owned subsidiary of Tata Power) owns a 26 percent stake in Resurgent Power. ICICI Bank (ICICI Bank) owns a 10 percent stake in Resurgent Power, and the balance of 64 percent is held by other global investors. Resurgent Power owns a 75.01 percent stake in Prayagraj Power Generation Company Limited, which owns and operates a 1,980 MW supercritical power plant in Uttar Pradesh. In addition, Resurgent Power also owns a 100 percent stake in NRSS XXXVI Transmission, which is commissioning a critical Inter-State transmission project for System Strengthening Scheme in Northern Region.
Speaking on the development, Dr Praveer Sinha, CEO and MD, Tata Power, said, "In line with our aspiration to expand our transmission business, Tata Power has partnered with ICICI and other global investors in Resurgent Power, that had bid for acquiring SEUPPTCL under Corporate Insolvency Resolution Process. We are delighted to have completed the acquisition, allowing all creditors to maximise the recovery from this project. This asset fits our overall strategy to maximise shareholder value through growth and sound investments. After successful turnaround of Prayagraj Power and acquisition of NRSS XXXVI, this asset will add further value to and diversify the Resurgent Power portfolio."
