NHPC Signs Pact To Buy Lanco Teesta’s 500 MW Hydro Power Project In Sikkim
This is the first time that a public sector undertaking has bagged a project under the Insolvency and Bankruptcy Code.
NHPC Ltd. 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 Managing Director Balraj Joshi said at a press conference in New Delhi.
The company will tie-up with state power discoms for entering into power purchase agreements because its existing PPA with Maharashtra is not valid anymore, he added.
NHPC 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 Teesta VI hydro project on the Teesta river in Sikkim.
Janardan Choudhary, Director (Technical) at NHPC, signed the agreement on behalf of NHPC with Huzefa Fakhri Sitabhkan, resolution professional of Lanco Teesta Hydro Power Ltd. and secured financial creditors.
On July 26, the Hyderabad bench of the National Company Law Tribunal had approved NHPC's resolution plan for debt-ridden Lanco Teesta Hydro Power.
The public sector undertaking has offered Rs 897.50 crore resolution plan for Lanco Teesta under the corporate insolvency resolution process.
This is the first time that a public sector undertaking has bagged a project under the Insolvency and Bankruptcy Code. NHPC is a mini-ratna company under Ministry of Power.
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.
In March 2019, the Union Cabinet Committee on Economic Affairs had approved the proposal for acquisition of Lanco Teesta's 500 MW Teesta Hydroelectric Power Project, and execution of balance works for the Teesta VI Project.