Resurgent Gets LoI from PFS to Acquire 100% Stake in NRSS XXXVI Transmission Project

The lenders of NRSS XXXVI Transmission Ltd (NRSS XXXVI), PTC India Financial Services Ltd (PFS), have 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.
 
The transaction is a part of the stressed transmission asset resolution process initiated by PFS through a competitive bidding process.
 
NRSS XXXVI was incorporated as a special purpose vehicle (SPV) to establish and operate a transmission system for System Strengthening Scheme in Northern Region (NRSS-XXXVI) along with LILO of Sikar-Neemrana 400kV D/C line at Babai on Build-Own-Operate-Maintain (BOOM) basis.
 
NRSS XXXVI has three elements consisting of a total length of 153 Kms 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. 

Resurgent Power is a Joint Venture based out of Singapore and is held 26 per cent by Tata Power through its wholly-owned Singapore-based subsidiary. The balance 74 per cent of Resurgent Power is held by ICICI Bank and other investors such as Power Platform Ltd and Kuwait Investment Authority.

Commenting on the development, Dr. Praveer Sinha, CEO & MD, Tata Power said “in line with our aspiration to expand our transmission business, Tata Power through Resurgent Power had bid for acquiring 100% stake in NRSS XXXVI Transmission Project. We are delighted to have been selected as the successful bidder by PTC India Financial Services (PFS). This asset fits in our overall strategy to maximize shareholder value through growth & sound investments. After successful turnaround of 1980 MW Prayagraj Power, this asset will add further value to the Resurgent portfolio.”

Meanwhile, the transaction would be subject to customary approvals and conditions.