NEW DELHI: With Lanco’s 500-MW Teesta hydropower project under its umbrella, state-run NHPC Limited has become the first public sector firm to win an asset under the insolvency resolution framework. The company on Friday signed a definitive agreement for implementation of the approved resolution plan for takeover of Lanco Teesta Hydro Power Limited.
Under the aegis of the agreement, NHPC will take over 30 per cent equity in Lanco Teesta Hydro Power Limited in Sikkim. The remaining equity will be held by the banks and the company will become a subsidiary of NHPC Limited.
“The project will be completed in the next five years and would generate 2,400 million units of electricity in a 90 per cent dependable year with an installed capacity of 500 MW (4x125MW),” said Balraj Joshi, chairman and managing director of NHPC Limited.
The total project cost is estimated at Rs 5,748.04 crore (at July 2018 price level), which includes a bid amount of Rs 897.5 crore for acquisition. All creditors whose claims were admitted by the resolution professional will get 36 per cent of their claims on a pro-rata basis from the proceeds coming out of NHPC’s bid.
NHPC will infuse around Rs 800 crore more capital in Lanco Teesta Hydro Power Limited to attain the 30 per cent shareholding of the company and banks have also agreed to relax the payment schedules to aid the resolution of this project. It would supply power at a levelised tariff of Rs 4.07 per unit, said Joshi.
He added that besides this, NHPC would bid for the 120-MW Jal Power Project, another asset under the Insolvency and Bankruptcy Code.