NHPC signs Definitive Agreement for acquisition of 500 MW Teesta VI HEP

New Delhi: NHPC Limited India’s premier hydropower company has signed the Definitive Agreement for implementation of the Approved Resolution Plan submitted by NHPC for takeover and resolution of Lanco Teesta Hydro Power Limited, who was implementing the 500 MW (125 MW x 4) Teesta VI HEP on Teesta river in Sikkim. Shri Janardan Choudhary, Director (Technical), NHPC signed the agreement in the presence of Shri Balraj Joshi, Chairman & Managing Director, NHPC and Shri Aniruddha Kumar, Joint Secretary, Ministry of Power at New Delhi on 4th October 2019 on behalf of NHPC with Shri Huzefa Fakhri Sitabhkan, Resolution Professional, Lanco Teesta Hydro Power Limited (LTHPL) and Secured Financial Creditors.

 

National Company Law Tribunal (NCLT), Hyderabad bench approved the resolution plan of NHPC on 26.07.2019 for the debt-ridden Lanco Teesta Hydro Power Ltd (LTHPL).NHPC has offered Rs. 897.50 Crore as Resolution Plan proceeds for the resolution of LTHPL under the Corporate Insolvency Resolution Process.

 

NHPC Limited is a Mini-Ratna company under Ministry of Power and this is the first time that a state run company has bagged a project under IBC.

 

The project will be implemented at an estimated project cost of Rs. 5,748.04 crore (at July 2018 price level), which includes a bid amount of Rs. 897.50 crore for acquisition. Earlier in March 2019, the Cabinet Committee on Economic Affairs had approved the proposal for acquisition of Lanco’s 500 MW Teesta Hydroelectric Power Project in Sikkim and execution of balance works for the Teesta VI Project. The project will be completed in a period of 5 years.