Resurgent Power gets Letter of Intent to acquire 75% stake in PPGCL

Tata Power today said its JV Resurgent Power Ventures has got letter of intent (LoI) from the lenders of Prayagraj Power Generation Company (PPGCL) for acquisition of 75.01 per cent stake in the company.

PPGCL is a 3X660 MW coal-based power project in Uttar Pradesh. It is the first stressed power asset account resolved by the lenders. SBI, which is the lead banker, has resolved the account under its Samadhan Scheme.

"We found that Prayagraj Power fits in our overall scheme of growth. It has all approvals and clearances in place along with long-term PPA (power purchase agreement) and fuel supply agreement.

"It will be a value-adding asset in Resurgent Power's portfolio," Tata Power CEO and MD Praveer Sinha said in a statement.

Tata Power holds 26 per cent stake in Resurgent Power, which is based out of Singapore. The balance 74 per cent is held by ICICI Bank and global investors.

The transaction will be subject to customary approvals and conditions.

Tata Power stock was trading 1.74 per cent higher at Rs 76 on BSE.