Tata Power said on Wednesday that Renascent Power Ventures, a subsidiary of Resurgent Power Ventures, has signed a stock purchase agreement with a syndicate of lenders led by the State Bank of India (SBI) to acquire a 75.01% stake in Prayagraj Power Generation.
Resurgent Power Ventures is backed by Tata Power and ICICI Bank.
The financial details of the transaction were not disclosed.
Prayagraj Power, a unit of Jaiprakash Associates, manages the Bara 1.980 MW power station.
Resurgent and JSW Energy had opposed each other to take over the plant in recent months. As FE reported in August, JSW Energy agreed to pay around 6,200 crore for the power plant, earning the previous Resurgent bid for Rs 6,086 crore. Both companies had agreed to bring the plant's tax liabilities at approximately 2.856 crore.
This would be the second resolution found on Asset Assets, since the Supreme Court on September 11 asked the RBI, banks and others to cease insolvency proceedings against corporate defaulters in line with the mandate of the Banking Regulator in February 12th to his orders. According to other sources, the 1,200 MW Binjkote units of SKS Power have been analyzed outside of NCLT after relief from the SC.
SBI is the leading lender and other bankers in the consortium with an exposure of over 500 crore are the Punjab National Bank, Indian Overseas Bank, India Bank, LIC and Union Bank of India. The total unpaid debt of the unit is about 11,494 crore.
Although the plant has fuel ties and an electricity purchase agreement that is committed to 90% of its capacity, the plant's utilization levels were low due to a lack of carbon availability due to the lack of working capital facilities.
The plant was introduced into a 25-year PPA with five Uttar Pradesh distributors in 2008 to sell 90% of the energy produced. Carried out a fuel supply agreement in August 2013 with North Coalfields to supply 6.95 MTPA coal. The project was put into operation 33 months after the scheduled date due to delays in the transfer of land from UP, slow inflow of shares by the contractor, increase in exchange rate, interest rate, equipment and labor costs, per contract and interest during construction, time exceeded.