Renascent Power Ventures Private Ltd., a wholly owned subsidiary of Resurgent Power Ventures Pte. Ltd., has signed a share purchase agreement (SPA) with a consortium of lenders led by State Bank of India to acquire 75.01% stake in Prayagraj Power Generation Company Limited (PPGCL), which owns and operates a 1,980 MW supercritical power plant in Uttar Pradesh.
“This transaction is the result of stressed asset resolution process initiated by the lenders through a competitive bidding process,” Tata Power said in a statement. The SPA will be subject to customary approvals from regulatory authorities and the transaction is expected to be closed over the next few months.
Resurgent Power is a joint venture between Tata Power International Pte. Ltd (TPIPL), ICICI Bank Ltd. and global investors, including Kuwait Investment Authority, State General Reserve Fund, Oman, set up to acquire assets in the Indian power sector. TPIPL owns 26% stake in Resurgent Power and the balance 74% is held by ICICI Bank and other global investors. Commenting on the deal, Mr. Praveer Sinha, CEO & MD, Tata Power and Director of Resurgent Power said, “The JV has been evaluating various assets that meets its investment objective and Prayagraj fits into that. Resurgent looks forward to maximizing its potential using the expertise of all the partners”.
