Oriental Green Power Company Ltd's (OGPCL) board Friday approved divesting its entire stake in Sanjog Sugars and Eco-Power Pvt Ltd (SSEPPL) in favour of Soorya Eco Power Pvt Ltd (SEPPL), following its policy to pull out of biomass subsidiaries.
The company will sell 9,18,954 equity shares, which form around 57.92 per cent of its total shares, to SEPPL, which in turn will take over the Rs 34.18 crore loan outstanding in SSEPPL.
According to reports, SEPPL held around 26 per cent stake in the biomass company and it had been infusing unsecured loan in it.
As per an ICRA report, SSEPL was incorporated in 2004 by J K Sagar and Prahlad Singh and their associates with the objective of setting up a 10 MW bio-mass power plant in Hanumangarh district of Rajasthan. In August, 2009, OGPL acquired 78.94 per cent stake in the company.
The power plant was commissioned in November 2011 and was funded by a term loan of Rs. 44.36 crore from Punjab National Bank. However, the operations were suspended in March 2013 as the company decided to sell power through power exchange and the net tariff realised was un-remunerative. The company signed a PPA with the Rajasthan state discoms on July 08, 2014, and the operations at the plant resumed on December 15, 2015, it added.