Asia and Oceania, Finance, New Development

NHPC signs definitive agreement for acquisition of 500-MW Teesta VI hydroelectric project

NHPC Limited has signed an agreement regarding the “takeover and resolution” of Lanco Teesta Hydro Power Limited, which has been developing the 500-MW Teesta VI hydroelectric project in India.

The definitive agreement was signed Oct. 4. 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, with Shri Huzefa Fakhri Sitabhkan, Resolution Professional, Lanco Teesta Hydro Power and Secured Financial Creditors.

The National Company Law Tribunal, Hyderabad bench, approved NHPC’s resolution plan for the debt-ridden Lanco Teesta Hydro Power in July 2019. NHPC has offered INR 8.975 billion (US$126.4 million) as Resolution Plan proceeds under the Corporate Insolvency Resolution Process.

NHPC Limited is a Mini-Ratna company under the Ministry of Power.

The Teesta VI hydroelectric project is on the Teesta River in Sikkim State. The underground powerhouse is to contain four 125-MW turbine-generator units. Twelve percent of the power produced was to go to Sikkim as a royalty, with the remainder being sold on the market.

The project will be implemented at an estimated project cost of INR 57.48 billion (US$809.3 million) (at July 2018 price level), which includes a bid amount of INR8.975 billion (US$126.4 million) for acquisition.

In March 2019, the Cabinet Committee on Economic Affairs approved the proposal for acquisition of Lanco’s 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 five years.