Tata Power update on takeover of Prayagraj Power by Resurgent

Tata Power Company announced that APTEL has upheld the approval granted for transfer of 75.01% ownership of Prayagraj Power Generation Company to Renascent Power Ventures, a 100% subsidiary of Resurgent Power Ventures, but without any reduction of adopted tariff.

Prayagraj Power owns and operates a 1980 MW (3X660MW) coal based thermal power project in the state of UP and had become an NPA due to financial and operational stresses. Resurgent is a joint venture between Tata Power International, ICICI Bank, Kuwait Investment Authority and State General Reserve Fund of Oman set up to acquire assets in the Indian Power Sector. Resurgent was selected as the successful bidder in resolving this stressed asset and had signed a Share Purchase Agreement with the Lenders for acquisition of 75.01% shares of PPGCL. Approval of the regulators was one of the pre-conditions for concluding this transaction.

 

With this development, Resurgent will look forward to concluding this transaction at the earliest, completing the takeover of Prayagraj project, stabilizing and improving operations of the plant to bridge the growing demand-supply gap of power in UP State.

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