State-run hydro power giant NHPC on Wednesday said it has completed formalities for taking over 500 MW Teesta VI hydro power project, which it has bagged under corporate insolvency resolution process.
NHPC had last week signed a definitive agreement for implementation of approved resolution plan for takeover and resolution of Lanco Teesta Hydro Power Ltd, which was executing the 500 MW (125 MWx 4) Teesta VI hydro project on Teesta river in Sikkim.
“NHPC has completed the formalities for the takeover of the 500 MW (125 MW x 4) Teesta VI HEP on Teesta River by remitting the resolution plan consideration of Rs 897.50 crore to the account of Lanco Teesta Hydro Power Limited for distribution to all the creditors as per the approved resolution plan,” NHPC said in a statement.
The company would supply power at a levelised tariff of Rs 4.07 per unit and the project would be completed in next five years, NHPC Chairman and MD Balraj Joshi had said.
The company will tie-up with state discoms for entering into power purchase agreements (PPAs) because its existing PPA with Maharashtra is not valid anymore, he had said.
Earlier, the Hyderabad bench of National Company Law Tribunal (NCLT) had approved the resolution plan of NHPC on July 26, 2019 for debt-ridden Lanco Teesta.
This was the first time that a state-owned company had bagged a project under the IBC (Insolvency and Bankruptcy Code).
The project will be implemented at an estimated project cost of Rs 5,748.04 crore (on 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, and execution of balance works for the Teesta VI Project.