Tata Pover said on Wednesday that Renascent Pover Ventures, a wholly owned subsidiary of Resurgent Pover Ventures, signed a share purchase agreement with a liaison consortium led by the State Bank of India (SBI) to buy 75.01% stake in Praiagra Pover Generation.
Resurgent Pover Ventures supports Tata Pover and ICICI Bank.
The transaction's financial details were not disclosed.
Praiagraj Pover, a Jaiprakash Associates unit, launches a 1.980 MV Bar power plant.
Resurgent and JSV Energi have opposed each other to take over the plant in the last few months. As reported by FE in August, JSV Energi agreed to pay around 6,200 crores for the power plant, killing previous Resurgent offerings of 6,086 crore. Both firms have accepted that the plant's tax liabilities are about Rs.856 crore.
This would be the second resolution that was found for stressful assets after the Supreme Court on September 11 asked RBI, banks and others to give up appeals to insolvency proceedings against businessmen in accordance with the regulations of the banking regulator of February 12 to their task. According to other sources, SKB Pover units of 1,200 MW Binjkote units achieved a resolution outside the NCLT after SC recovery.
SBI is the leading lender, and other bankers in a consortium with an exposure of more than 500 crore are Punjab National Bank, Indian Overseas Bank, Bank of India, LIC and Union Bank of India. The total outstanding debt of the plant amounts to 11,494 crore.
Although the plant has a fuel connection and an electricity purchase contract related to 90% of its capacity, the utilization levels of the plant are low due to the lack of coal due to lack of working capital funds.
The plant entered the 25-year PPA with five distribution companies in Uttar Pradesh in 2008 to sell 90% of the energy produced. In August 2013, he signed a fuel supply contract with Northern Coalfields for the supply of 6.95 MTPA coal. The project was commissioned 33 months after the deadline due to delays in the transfer of land by UP, slow investments abroad, increase in foreign exchange variation, interest rates, equipment costs and contract work and interest during construction due to overdraft.