Resurgent Power Ventures Pte Ltd awarded LOI by resolution professional of South East UP Power Transmission Company Limited
National, 9th March 2022: The resolution professional of South East UP Power Transmission Company Limited (SEUPTCL), has issued a Letter of Intent (LOI) selecting Resurgent Power Ventures Pte Ltd (Resurgent) as a successful resolution applicant under IBC proceedings. The transaction is part of a stressed asset resolution process initiated by a resolution professional through a competitive bidding process.
SEUPTCL was incorporated as a special purpose vehicle formed by UP Power Transmission Company Limited (UPPTCL) on September 11, 2009, to implement and operate the specified intra-state transmission system for a period of 35 years under public-private partnership model on Build-Own-Operate-Maintain & Transfer (BOOT) basis.
SEUPTCL has approx.1500 Km of Transmission Line and is divided into two groups. The Group- 1 consists of 6 nosof Transmission Element totalling 582 KM of Transmission Lines (765 KV & 400 KV) and 2 Nos of 400 KV Substation with a combined capacity of 1630 MVA and the Group- 2 comprises 8 nos of Transmission Element totalling 953 KM of Transmission Lines (765 KV & 400 KV) and 3 Nos of 400 KV Substation with a combined capacity of 4100 MVA.
Resurgent Power will invest equity and raise debt in SEUPTCL at a total enterprise value of more than Rs 6000/- crores to implement and commission the elements timely and turnaround the asset that will maximize value for all the stakeholders.
Speaking on the development, Dr. Praveer Sinha, CEO & MD, Tata Powersaid“Tata Power partnering with investors in Resurgent Power had bid for acquiring SEUPTCL and is delighted to have been selected as the successful bidder by the Resolution Professional for acquiring the project under IBC proceedings. This asset will bring significant value to our transmission business and diversify the Resurgent Power portfolio after the successful turnaround ofthe 1980 MW Prayagraj Power Plant and acquisition of System Strengthening Scheme in Northern Region NRSS XXXVI Transmission Limited.”
Resurgent Power is a Joint Venture based out of Singapore and is held 26% by Tata Power through its wholly-ownedSingapore-based subsidiary Tata Power International Pte Ltd. The balance 74% of Resurgent Power is held by ICICI and investors of international repute.
The transaction shall be subject to customary approvals and conditions under IBC proceedings.