National Company Law Tribunal (NCLT), Hyderabad Bench approved NHPC’s bid for the debt-ridden Lanco Teesta Hydro Power Ltd (LTHPL) for an amount of Rs 897.50 crores 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 original bid of Rs 907 crore was initially approved by the Committee of Creditors (CoC) of Lanco Teesta Hydro Power with 100 per cent vote and the present bid amount of Rs 897.50 crores takes into consideration the theft occurring at site was approved by 97.34 per cent vote.
As per the approved resolution plan, NHPC would pay Rs 877.74 crore to the financial creditors and Rs 11.12 crore would go to the operational creditors of Lanco Teesta Hydro Power. NHPC will fund the project through a debt-equity ratio of 70:30.
The project will be implemented at an estimated cost of Rs 5,748.04 crore (at July 2018 price level), which includes a bid amount of Rs. 907 crore for acquisition and estimated cost of balance work of Rs. 3,863.95 crore, which includes interest during construction (IDC) and foreign component (FC) of Rs. 977.09 crore.
Earlier in March 2019, the Cabinet Committee on Economic Affairs had approved the proposal for NHPC to take over Lanco’s 500 MW Teesta Hydroelectric Power Project in Sikkim.
Besides NHPC, another PSU viz Satluj Jal Vidyut Nigam Ltd. (SJVNL) had also bid for the debt-ridden company. The NCLT had started insolvency proceedings against M/s. Lanco Teesta Hydro Power Ltd., after admitting a plea by its lead lender ICICI Bank on March 16, 2018 and a resolution professional was appointed on April 24, 2018, handout issued by NHPC said.