Pursuant to the letter of intent issued by lenders of NRSS XXXVI Transmission Ltd, Resurgent Power Ventures Pte Ltd has completed the acquisition, and settled debt of the lender, of NRSS XXXVI.
The transaction is part of stressed asset resolution process initiated by PTC India Financial Services Ltd, lender of NRSS XXXVI through a competitive bidding process.
NRSS XXXVI was incorporated as a special purpose vehicle to establish and operate transmission system for System Strengthening Scheme in Northern Region (NRSS-XXXVI) along with LILO of Sikar-Neemrana 400kV D/C line at Babai on Build-Own-Operate-Maintain (BOOM) basis.
NRSS XXXVI has three elements with a total length of 153 km spread across the states of Uttarakhand, Rajasthan and Haryana.
- Element-1: LILO of one circuit of 400kV double-circuit Sikar (PG) – Neemrana (PG) line at Babai (RRVPNL) along with two 400kV line bays at Babai.
- Element-2: 400kV double-circuit Babai–Bhiwani double-circuit transmission line along with two 400kV line bays at Babai.
- Element-3: A 400kV link between Rishikesh and Koteshwar in Uttarakhand.
Current project status
Out of the three elements, Element 1 comprising a 1.5-km transmission line and two bays of 400kV are completed while work for balance 151 km of lines and four bays of 400kV is underway.
It may be recalled that in March 2022, Resurgent also received the letter of intent to acquire a stressed intrastate power transmission scheme in Uttar Pradesh (Read more)
Debt settlement
The transaction entails payment for one-time settlement of outstanding debt and purchase of equity shares for a total consideration of Rs.127 crore and additional payouts linked to certain events outlined in the share purchase and debt settlement agreement. In addition, Resurgent Power will invest equity and raise debt in NRSS XXXVI for completion of Element-2 and Element-3. When completed, the total enterprise value will be approximately Rs.470 crore.
Significant milestone, says MD
Speaking on the development, Dr. Praveer Sinha, MD & CEO, Tata Power said, “”The completion of acquisition of a 100 per cent stake in NRSS XXXVI Transmission Ltd is another significant milestone for Resurgent Power, and it aligns with our aspirations of expanding our transmission business while also successfully resolving stressed assets for lenders. This asset will bring more value to the Resurgent portfolio after the successful turnaround of the 1980-mw Prayagraj Power in the last three years, and it aligns with our broader strategy of maximizing shareholder value through expansion and sound investments.”
Featured photograph (source: Linxon) is purely for representation.
