Tata Power JV firm Resurgent Power to acquire NRSS XXXVI transmission project
Tata Power said that Resurgent Power Ventures, its Singapore-based joint venture (JV) with an investor group, has been chosen as lender’s nominee to acquire 100% of NRSS XXXVI Transmission Limited (NRSS XXXVI), a northern Indian transmission project.
In this connection, PTC India Financial Services has issued a letter of intent (LOI) to Resurgent Power Ventures.
NRSS XXXVI is a special purpose vehicle to build and operate a transmission system for System Strengthening Scheme in Northern Region (NRSS-XXXVI) along with LILO of Sikar-Neemrana 400kV D/C line at Babaion on build-own-operate-maintain (BOOM) basis.
Tata Power holds a 26% stake in Resurgent Power Ventures via its fully-owned subsidiary based in Singapore. The remaining 74% stake is owned by ICICI Bank, Kuwait Investment Authority, and Power Platform Ltd.
NRSS XXXVI is made up of three elements with a total length of 153kms transmission line spanning Uttarakhand, Rajasthan, and Haryana. A small segment of 1.5km of transmission line and a couple of bays of 400KV of these have been completed while the remaining work of 151km of lines and four bays of 400 KV is in progress.
Resurgent Power Ventures will invest equity and raise debt in the NRSS XXXVI transmission project at a total enterprise value of around INR 470 crores for its execution and commissioning.
Dr. Praveer Sinha — CEO and MD of Tata Power said: “In line with our aspiration to expand our transmission business, Tata Power through Resurgent Power had bid for acquiring 100% stake in NRSS XXXVI Transmission Project. We are delighted to have been selected as the successful bidder by PTC India Financial Services (PFS).
“This asset fits in our overall strategy to maximize shareholder value through growth & sound investments. After successful turnaround of 1980 MW Prayagraj Power, this asset will add further value to the Resurgent portfolio.”
The deal will be contingent on customary approvals and conditions.