A joint venture of Tata Power Company Ltd. and ICICI Bank Ltd. on Wednesday acquired real estate baron Manoj Gaur's biggest power plant at Prayagraj in Uttar Pradesh by agreeing to takeover Rs 6,000 crore of debt of the company.
Renascent Power Ventures Pvt. Ltd., the wholly-owned subsidiary of Resurgent Power Ventures Pte, has acquired 75 percent stake in Prayagraj Power Generation Co Ltd. which owns and operates 1,980 MW coal-based electricity generation unit, Tata Power said in a regulatory filing.
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Resurgent Power is a joint venture of ICICI Bank and Tata Power, while PPGCL is a subsidiary of Gaur's Jaiprakash Power Ventures Ltd., which has been shedding assets to cut debt.
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It has sold power projects of about 3,800 megawatt capacity in the last few years to settle debt of close to Rs 21,000 crore.
Gaur will not get any money from the sale despite putting in Rs 3,000 crore equity.
His group had last sold two hydroelectric projects -- 300 MW Baspa Stage-II and 1,091 MW Karcham Wangtoo in Himachal Pradesh -- to Sajjan Jindal-controlled JSW Energy Ltd. for Rs 9,700 crore in cash.
After these sales, Jaiprakash Power Ventures has three more power plants with 2,200 MW electricity generation capacity.
PPGCL had a total debt of Rs 11,000 crore and Renascent has agreed to takeover Rs 6,000 crore.
"Renascent Power Ventures Pvt. Ltd. (Renascent) has today acquired 75.01 percent equity stake and 27,00,00,000 preference shares of Rs 10 each of Prayagraj Power Generation Co Ltd," Tata Power said in the regulatory filing.
The remaining 25 percent interest in the project is held by Jaiprakash Associates Ltd. and banks.
Tata Power holds 26 percent stake in Resurgent Power, the joint venture based out of Singapore, through its wholly-owned Singapore-based subsidiary Tata Power International Pte.
The balance 74 percent stake in Resurgent is held by ICICI Bank, Power Platform Ltd. and Kuwait Investment Authority.
The coal-fired power plant currently operates at 62 percent of capacity or plant load factor.
It was won by Jaypee Group through competitive bidding, quoting a tariff of Rs 3.06 per unit.
A case for reduction in electricity tariff was made because of reduction in the debt, but the Appellate Tribunal For Electricity didn't allow it in September order.
Gaur has taken a hit of Rs 3,000 crore on sale of the power plant.
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