APTEL approves share transfer of Prayagraj Power without reduction of adopted tariff

The Appellate Tribunal For Electricity (APTEL) has upheld the approval granted for the transfer of 75.01 per cent ownership of Prayagraj Power Generation Company to Renascent Power Ventures without any reduction of the adopted tariff.

Prayagraj Power owns and operates a 1,980 megawatt (3 x 660 MW) coal-based thermal power project in Uttar Pradesh and had become a non-performing asset due to financial and operational stresses.

Resurgent is a joint venture between Tata Power International, ICICI Bank, Kuwait Investment Authority and State General Reserve Fund of Oman set up to acquire assets in the Indian power sector.

Resurgent was selected as the successful bidder in resolving this stressed asset and had signed a share purchase agreement with the lenders for the acquisition of 75.01 per cent shares of Prayagraj Power. Approval of the regulators was one of the pre-conditions for concluding this transaction.

"This judgment of APTEL is a positive development for the power sector and specifically for resolution of stressed assets," said Praveer Sinha, Managing Director and CEO of Tata Power.

"The APTEL judgement protects economic viability of stressed assets post-resolution, thus providing certainty for the bidders who wish to participate in the resolution process of stressed assets in the future," he said in a statement.

Resurgent will look forward to concluding this transaction at the earliest, completing the takeover of Prayagraj project, stabilising and improving operations of the plant to bridge the growing demand-supply gap of power in Uttar Pradesh, the statement added.

Tata Power is India's largest integrated power company and, together with its subsidiaries and jointly controlled entities, has an installed capacity of 11,107 MW.

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