Resurgent Power gets Letter of Intent to acquire 75% stake in PPGCL

Illustration: Ajay Mohanty

Tata Power today said its JV Resurgent Power Ventures has got letter of intent (LoI) from the lenders of Prayagraj Power Generation Company (PPGCL) for acquisition of 75.01 per cent stake in the company.

PPGCL is a 3X660 MW coal-based power project in Uttar Pradesh. It is the first stressed power asset account resolved by the lenders. SBI, which is the lead banker, has resolved the account under its Samadhan Scheme.

"We found that Prayagraj Power fits in our overall scheme of growth. It has all approvals and clearances in place along with long-term PPA (power purchase agreement) and fuel supply agreement.

"It will be a value-adding asset in Resurgent Power's portfolio," Tata Power CEO and MD Praveer Sinha said in a statement.

Tata Power holds 26 per cent stake in Resurgent Power, which is based out of Singapore. The balance 74 per cent is held by ICICI Bank and global investors.

The transaction will be subject to customary approvals and conditions.

Tata Power stock was trading 1.74 per cent higher at Rs 76 on BSE.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel