Resurgent Power – a joint venture company of Tata Power with ICICI Ventures received Letter of Intent (LoI) from the lenders consortium led by State Bank of India (SBI) to buy the financially hard pressed Jaiprakash Associates’ 1,980 MW Bara (Prayagraj) power project, reports Business Standard.
The plant located in Uttar Pradesh becomes the first stressed power asset to find a buyer.
Tata Power in a statement informed that Resurgent has received Letter of Interest (LoI) for 75.01 per cent stake in Prayagraj Power Generation Company Limited (PPGCL) which operates the Bara project.
JSW Energy was among the other companies in the fray to buy the project. Lenders offered 89.47 per cent stake in the company at face value of Rs 10 each.
“After our due diligence, 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 and fuel supply agreement. It will be a value-adding asset in Resurgent Power’s portfolio.” Praveer Sinha, Chief Executive Officer and Managing director, Tata Power was quoted saying.
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