State-owned hydro power giant NHPC on Friday signed an agreement to acquire 500 MW Teesta VI hydro power project, which it bagged under corporate insolvency resolution process.
It would supply power at a levelised tariff of Rs 4.07 per unit and would be completed in next five years, NHPC Chairman and MD Balraj Joshi said at a press conference here.
The company will tie-up with state discoms for entering into power purchase agreements (PPAs) because its existing PPA with Maharashtra is not valid anymore, he added.
NHPC Ltd has signed the definitive agreement for implementation of approved resolution plan for takeover and resolution of Lanco Teesta Hydro Power Ltd, which was executing the 500 MW (125 MWx 4) Teesta VI hydro project on Teesta river in Sikkim.
Janardan Choudhary, Director (Technical), NHPC signed the agreement on behalf of NHPC with Huzefa Fakhri Sitabhkan, Resolution Professional, Lanco Teesta Hydro Power Ltd (LTHPL) and secured financial creditors.
Earlier, Hyderabad-bench of National Company Law Tribunal (NCLT) had approved the resolution plan of NHPC on July 26, 2019 for debt-ridden Lanco Teesta Hydro Power Ltd (LTHPL).
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The PSU has offered Rs 897.50 crore resolution plan for LTHPL under the corporate insolvency resolution process.
NHPC is a mini-ratna company under Ministry of Power and this is the first time that a state-owned company has bagged a project under the IBC (Insolvency and Bankruptcy Code).
The project will be implemented at an estimated project cost of Rs 5,748.04 crore (on July 2018 price level), which includes a bid amount of Rs 897.50 crore for acquisition.
Earlier in March 2019, the Cabinet Committee on Economic Affairs had approved the proposal for acquisition of Lanco's 500 MW Teesta Hydroelectric Power Project, and execution of balance works for the Teesta VI Project.