NHPC to bid for Rangit hydro project in Sikkim under IBC2 min read . Updated: 11 Mar 2019, 08:20 PM IST
- The Rangit Stage IV 120 MW project is a stressed asset and is undergoing insolvency proceedings
- NHPC Director Finance M K Mittal said this is the first time a public sector firm is buying a private entity through NCLT
NEW DELHI : Buoyed by the winning bid for Lanco's Teesta VI, state-owned NHPC will bid for Jal Power Corporation's Rangit hydro project in Sikkim, which is undergoing insolvency proceedings, NHPC Chairman and MD Balraj Joshi said.
The Rangit Stage IV 120 MW project is a stressed asset and is undergoing insolvency proceedings in the National Company Law Tribunal (NCLT).
Earlier this month, the CCEA approved NHPC's proposed acquisition of Lanco Teesta Hydro Power in Sikkim at a bid out price of ₹907 crore. The total investment approval for the project is ₹5,748.04 crore which includes ₹907 crore bid amount.
"We are also looking at another project which is also in Sikkim again. We are just waiting for the (commercial bid to open). This is a Jal Power project. This is also at the same status as Teesta VI. They are yet to call for EoI (expression of interest). NCLT will hear the case on March 15," Joshi told reporters in a press conference.
NHPC Director Finance M K Mittal said this is the first time a public sector firm is buying a private entity through NCLT.
"We have been a frontrunner in buying one project through NCLT. No other PSU has been able to do so. We have been very aggressive," Mittal said.
Sikkim government had awarded Rangit project to Jal Power on November 1, 2004. An agreement for setting up of Rangit Stage-IV was inked with the state on December 9, 2005 on build, own, operate and transfer (BOOT) basis.
The project envisages installation of three units of 40 MW each (3X40).
These proposed acquisitions by NHPC assume significance in view of its plans to achieve 10 GW installed generation capacity by 2022, up from 7071.2 MW at present.
Talking about the performance of NHPC, Joshi said the cumulative generation from all power stations for the current fiscal stands at 23,057 million units (MUs) (as on March 10, 2019) and shall surpass previous record of 23,404 MUs.
Joshi also told reporters that NHPC has been appointed as an aggregator under Pilot Scheme–II for procurement of aggregated power of 2500 MW for 3 years through PFC Consultancy Ltd, which is a nodal agency for that.
Now the process is for engaging generators to supply power under the scheme. The scheme shall involve transaction of electricity of around 18,615 MUs at 85 per cent plant load factor (capacity utilisation) of 2500 MW and turnover of more than of ₹7,000 crore on yearly basis.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.