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NHPC rises after NCLT approves resolution plan for Jalpower Corp

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NHPC rose 1.82% to Rs 25.20 after the National Comp Any Law Tribunal (NCLT) approved the company's Rs 165 crore resolution plan for taking over Jalpower Corporation as going concern.

Jalpower Corporation (JPCL) was executing 120-mw Rangit Stage-IV Hydroelectric Project in Sikkim.

JPCL is currently undergoing Corporate Insolvency Resolution Process which was initiated on 9 April 2019 vide an order of NCLT and Sanjay Kumar Deewani was appointed as Interim Resolution Professional (IRP).

In its resolution proposal (RP), NHPC had proposed a resolution amount of Rs 165 crore as full and final settlement for all stake holders including financial, operational and other creditors.

NHPC's RP was found to be feasible and viable and the company was declared as the successful resolution applicant by Committee of Creditors (CoC) on 24 January 2020.

Earlier, NHPC had successfully acquired Lanco Teesta Hydro Power through the NCLT process.

NHPC is engaged in electric power generation by hydroelectric power plants. The firm is also engaged in contracts, project management and consultancy works. As of 30 September 2020, the Government of India held 70.95% stake in the company.

The company's consolidated net profit declined by 7.6% to Rs 1,188.04 crore on a 5.5% fall in net sales to Rs 2,899.56 crore in Q2 FY21 over Q2 FY20.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, January 08 2021. 11:54 IST