Tata and Adani to bid for UP Power Transmission Co

Tata and Adani are set to bid for the South-East Uttar Pradesh Power Transmission Company for the third time.

Tata Power had outbid Adani, offering 100% loan recovery of Rs 3,700 crore to the lenders. Adani's bid was marginally low. However, Tata Power's bid was set aside because it was conditional. Tata and Adani submitted their first bid in August and then in October. The third round of bidding is set for January end.

Tata Power has requested the lenders to consider the Swiss challenge based on the fact that it was the highest bidder in the last round and should get a chance to match the best bid.

According to the sources, Vedanta Group company Sterlite Power, Power Grid Corporation of India and REC Power Development and Consultancy Limited (REC PDCL) also participated in the earlier round of bidding.

South-East UP Power Transmission Company's resolution professional, Shailesh Verma, invited companies to submit an Expression of Interest (EoI) to buy the company to prospective bidders. Total eight companies submitted EoI.

Other companies that submitted expression of interest (EoI) were Torrent Power, Megha Engineering, and a sovereign wealth fund.

South-East UP Power Transmission Company was accused of Insolvency and Bankruptcy Code (IBC) at the National Company Law Tribunal (NCLT) after it defaulted on loans to a group of lenders, including Rural Electrification Corporation (REC), Power Finance Corporation, Bank of India and Axis Bank.

The company witnessed financial issues after its owner Isolux Corsan filed for bankruptcy in Spain.

Isolux Corsan had won 35 years of concession to build and operate a power transmission network in UP across 1,600 km in 2011.

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