Tata Power emerges as highest bidder for UP Transco

Tata Power Limited has emerged as the highest bidder for the South-East UP Power Transmission Company, bidding for over Rs 3,000 crore to buy the transmission firm under the insolvency process.

On 30 October, Tata Power submitted its final bid through Resurgent Power Ventures.

The final bids were also submitted by Adani Group, Sterlite Power, Power Grid Corporation of India Limited, and REC Power Development and Consultancy Limited.

An executive officer said on behalf of the lenders that the company would go forward with the Tata Power bid as it provides the best offer.

Sources told the media that the lenders will vote on Tata Power and then approach their respective boards for final approval. Tata Power may get two-thirds of the vote required to declare it as the winning bidder.

All the dues will be recovered from Rural Electrification Corporation, Power Finance Corporation, Bank of India and Axis Bank.

All the other bidders have been given a second chance to modify and better their initial offer.

The UP Transco is under the Insolvency and Bankruptcy Code (IBC) proceedings by the National Company Law Tribunal (NCLT).

An invitation was issued by Deloitte on 18 February to submit an Expression of Interest (EoI) to buy the company. The other big four auditors are advising the lenders on the sale process.

In July 2011, Isolux Corsan had won 35 years of the contract to build and operate a power transmission network in UP across 1,600 km. The company took loans of Rs 3,100 crore from local lenders to finance the project, but due to its financial crunches, it ended up filing for bankruptcy.

The Indian lenders had acquired the local facility and approached NCLT to begin sale processes to recover the loans.

Image Source

---

Also read: EESL awards orders worth Rs 538 cr to Tata Power