State-run hydro power giant NHPC has emerged as the successful bidder for insolvency-bound Jal Power Corporation's 120MW Rangit project in Sikkim with a bid of Rs 165 crore.
"NHPC Ltd has been declared as the Successful Resolution Applicant by the Committee of Creditors (CoC) of Jal Power Corporation Limited (120 MW Rangit Stage IV HE Project) subject to approval of Resolution Plan by the Hon'ble National Company Law Tribunal, Hyderabad Bench," an NHPC statement said.
Meanwhile, a source said that NHPC quoted around Rs 165 crore for the project under insolvency proceedings.
The source also said that NHPC is hopeful of completing the project in three-and-a-half years after the approval of Cabinet Committee of Economic Affairs (CCEA).
As per the Insolvency and Bankruptcy Code (IBC), now the resolution professional of the debt-ridden Jal Power Corporation would place the NHPC's bid for approval of the National Company Law Tribunal (NCLT).
The company would also have to get approvals of the Public Investment Board and CCEA thereafter.
The Sikkim government had awarded Rangit project to Jal Power Corporation on November 1, 2004. An agreement for setting up of Rangit Stage-IV was inked with the state on December 9, 2005, on a build-own-operate-transfer (BOOT) basis.
The project envisages installation of three units of 40 megawatts each.
Earlier last year, the NHPC had acquired Lanco Teesta VI Hydro Power Project in Sikkim at a bid-out price of about Rs 907 crore under insolvency proceedings. The total investment approval for the project is Rs 5,748.04 crore, which includes Rs 907 crore bid amount.
The Teesta VI is the first project which was acquired through the NCLT route by a public sector undertaking.
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