Comments
The Competition Commission of India (CCI) on Tuesday approved Resurgent PowerVentures Pvt Ltd’s acquisition of a 75 per cent stake in Prayagraj Power Generation Company Ltd.
Resurgent PowerVentures, a wholly-owned subsidiary of Resurgent Power, had signed an agreement in November to acquire a 75.01 per cent stake in Prayagraj Power, which owns and operates a 1,980 MW supercritical power plant in Uttar Pradesh. Resurgent is a joint venture based out of Singapore between Tata Power, ICICI Bank and international investors such as Kuwait Investment Authority and State General Reserve Fund of Oman.
Tata Power owns a 26 per cent stake and the balance is held by the other investors.
Earlier deal
Resurgent Power had submitted its ₹6,000-crore bid for Prayagraj Power early 2018, offering a 15 per cent stake to the lenders and 10 per cent to the original promoter, Jaiprakash Associates.
JSW Energy had offered ₹6,200 crore, but it was not accepted as the bid was submitted after the letter of intent (LoI) was issued to Resurgent Power.
‘Good fit’
In an earlier interaction, Praveer Sinha, CEO & MD, Tata Power, and Director of Resurgent Power, said the company had been evaluating various assets that met its investment objectives and Prayagraj was a good fit.
“Resurgent looks forward to maximising its potential using the expertise of all the partners,” he said.
Sinha added that once the transaction was done, Tata Power may invest around ₹500 crore over 2-3 years in the Prayagraj plant to upgrade it.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.