Resurgent to acquire 100% stake in a northern transmission project

Resurgent Power Ventures Pte Ltd (Resurgent) has been selected as the lender's nominee to acquire 100 per cent shareholding in a troubled power transmission project spread across three states of Haryana, Rajasthan and Uttarakhand.

Resurgent is a Singapore-based joint venture in which 26 per cent shareholding is held by Tata Power through its wholly-owned Singapore-based subsidiary. The balance 74 per cent of Resurgent Power is held by ICICI Bank, Power Platform Ltd and Kuwait Investment Authority.

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The lender of NRSS XXXVI Transmission Ltd, PTC India Financial Services Ltd (PFS), has issued a Letter of Intent (LOI) selecting Resurgent Power Ventures Pte Ltd (Resurgent) as Lender's Nominee to acquire

100 per cent shareholding in NRSS XXXVI, Tata Power said in a statement.

According to the statement, the transaction is a part of stressed transmission asset resolution process initiated by PFS through a competitive bidding process.

The NRSS XXXVI was incorporated as a special purpose vehicle to establish and operate transmission system for System Strengthening Scheme in Northern Region (NRSS-XXXVI) along with LILO of Sikar-Neemrana 400kV D/C line at Babai.

NRSS XXXVI has three elements consisting of a total length of 153 km transmission line spread across the states of Uttarakhand, Rajasthan and Haryana.

Out of this, a small portion of 1.5 km of transmission line and 2 bays of 400 KV are completed while work for balance 151 km of lines and 4 bays of 400 KV is underway.

Resurgent will invest equity and raise debt in NRSS XXXVI at a total enterprise value of approx. Rs 470 crore to implement and commission the above projects and turnaround the asset that will maximize value for all the stakeholders.