Project comprises about 1,500 km of 765 kV and 400 kV transmission lines, five sub-stations in UP
State-run Power Finance Corporation (PFC) on Saturday said that it has successfully resolved the Corporate Insolvency Resolution Process (CIRP) of India’s largest stressed asset in the transmission sector, South East UP Power Transmission Company.
PFC was the lead financial institution for the project, with another State-run REC and Bank of India as co-lenders in the consortium.
“The project, comprising about 1,500 km of 765 kV and 400 kV transmission lines and five sub-stations in Uttar Pradesh (UP), will significantly benefit the consumers of UP. This is a landmark resolution through the CIRP under the IBC (2016), which has resulted in lenders recovering in excess of 100 per cent of the principal amount,” PFC said in a statement.
The transaction involves a one-time upfront settlement amount of ₹3,251 crore along with a payout of part of the existing cash balance in line with the Resolution Plan, it added. The project was originally allocated by Uttar Pradesh Power Transmission Company on (build-own-operate and transfer) BOOT-basis to Isolux Corsan Concessions SA of Spain in 2011.
Through the CIRP mechanism under IBC (2016), the project has now been acquired by Resurgent Power Ventures, which is co-sponsored by Tata Power and ICICI Ventures, with reputed sovereign wealth funds as other major shareholders.
Other details
The project was handed over to Resurgent Power Ventures after receipt of the upfront payment on September 16. The implementation documents were signed in the presence of PFC CMD Ravinder Singh Dhillon and senior officials of Tata Power and Resurgent Power Ventures.
Shailesh Verma acted as the Resolution Professional/Managing Agent and was assisted by Deloitte India Insolvency Professionals in successfully completing the transaction.
PFC is India’s leading power sector financier with a consolidated loan book of about ₹7.58-lakh crore and is focusing on areas like renewables, refinancing, and private transmission projects, among others, including non-power sector-related infrastructure projects for business growth.
Source: PTI
