PTC India Financial Services update on resolution of stressed account of NRSS XXXVI Transmission

Nominates Resurgent Power Ventures, Singapore to acquire NRSS XXXVI Transmission

PTC India Financial Services announced that it has selected Resurgent Power Ventures, Singapore as its nominee to acquire 100% shareholding in NRSS XXXVI Transmission's power transmission project in Northern India. Resurgent is 26% owned by Tata Power with ICICI Bank, Power Platform and Kuwait Investment Authority holding the balance 74% shareholding.

NRSS XXXVI is a wholly owned subsidiary of Essel Infra Projects (EIPL) which won bid to strengthen the transmission system in the Northern Region in the states of Rajasthan, Haryana and Uttarakhand along with LILO of Sikar-Neemrana 400 kV D/C at Babai, Rajasthan.

PTC India Financial Services (PFS) sanctioned a loan of Rs. 306 crore to NRSS XXXVI Transmission after it was awarded the project through competitive bidding initiated by Ministry of Power (MoP) through Bid Process Coordinator (BPC) REC Transmission Power Company. As sole lender, PFS disbursed around Rs. 206.92 crore out of the sanctioned loan amount. The account started showing indication of stress in the second quarter of FY19-20 on account of liquidity issue in the promoter group and later on became an NPA.

In the process, PFS to receive resolution amount close to book value of the account. Apart from the above account, PFS during last three years i.e. FY18-19, FY19-20 and FY 20-21 has resolved 10 stressed accounts (principal outstanding cumulatively ~Rs. 1161 crore) through multi-pronged approach such as sale to ARC, resolution under IBC in NCLT, acquisition & sale of assets under SARFAESI and through One Time Settlement (OTS) offer from the promoter or new developer. PFS is also in advance stage of resolving another stressed account. With resolution of captioned account, there is huge improvement in PFS's Net NPA value.

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