PFS resolves stressed SKS Power Generation; unit sold to Singapore company

PTC India Financial services (PFS) has achieved the resolution of its stressed loan account SKS Power Generation Ltd. The Chhattisgarh based power unit of 2X300 MW was sold to Singapore-based entity Agritrade Resources Limited which gave a one-time settlement amount of Rs 137 crore. This translates into haircut or debt provisioning of close to 55 per cent by the lenders led by SBI.

“Agritrade Resources emerged as the H1 Bidder. Lenders earlier entered into definitive agreement with the investor on 12th November 2018 and subsequently, post compliance of the condition precedents and on receipt of the OTS amounting to Rs 137.09 crore transaction closed on 18th March 2019. It is also to mention that PFS had made provisioning of Rs. Rs 204.44 crore prior to closure of the transaction,” said PFS in a public statement.

Due to the closure of the mentioned transaction, PFS' stressed loan portfolio has come down by Rs 341.53 crore during Q4 of FY 2019, said the company.

In an interview with Business Standard, Pawan Singh, MD&CEO of PFS, said, currently 62 per cent PFS portfolio is renewable energy projects while their exposure to the conventional power sector will come down to 5 per cent by middle of next year. “Our thermal power exposure is 17 per cent of our portfolio currently which we are trying to bring down to 9 per cent by this fiscal end. Two of the stressed assets would get resolved – Prayagraj and SKS Energy,” Singh told the paper.

SKS was part of the 34 identified stressed thermal power assets totalling 40,000 MW and a debt exposure of Rs 2 trillion. SKS is the second project to be announced resolved after Prayagraj Power project of Jaypee Infra, which was sold to Resurgent Power – a joint venture company of Tata Power with ICICI Ventures