NHPC takes over Lanco Teesta Hydro Power Limited

New Delhi, October 9 () State hydropower giant NHPC said Wednesday that it has completed the procedures to take on the 500 MW Teesta VI hydropower project, which has been grouped into the corporate insolvency resolution process .

Last week, NHPC had signed a definitive agreement for the implementation of an approved resolution plan for the acquisition and resolution of Lanco Teesta Hydro Power Ltd, which was executing the 500 MW (125 MWx 4) Teesta VI hydroelectric project on the river Teesta in Sikkim.

NHPC has completed the procedures for the acquisition of the Teesta VI HEP of 500 MW (125 MW x 4) in the Teesta River by sending the consideration of the resolution plan of Rs 897.50 million to the account of Lanco Teesta Hydro Power Limited for distribution to all creditors under the approved resolution plan, NHPC said in a statement.

The company would supply power at a leveled rate of Rs 4.07 per unit and the project would be completed in the next five years, said NHPC president and MD Balraj Joshi.

The company will be linked to state inconvenience to enter into energy purchase agreements (PPA) because its existing PPA with Maharashtra is no longer valid, he had said.

Previously, the Hyderabad Bank of the National Company Law Court (NCLT) had approved the NHPC resolution plan on July 26, 2019 for Lanco Teesta, in debt.

This was the first time that a state-owned company had packaged a project under the IBC (Bankruptcy and Insolvency Code).

The project will be implemented at an estimated project cost of Rs 5,748.04 crore (at the price level of July 2018), which includes an offer amount of Rs 897.50 rupees for the acquisition. At the beginning of March 2019, the Economic Affairs Cabinet Committee approved the proposal for the acquisition of the 500 MW Teesta Hydroelectric Power Project of Lanco and the execution of the balancing works for the Teesta VI Project. ABI RVK