The Tata Power unit signs an agreement to acquire 75% of the capital of the 1,980 MW Bara power plant

The two companies agreed to bear the tax obligations of the plant, amounting to approximately 2,856 kroner.

Tata Power announced Wednesday that Renascent Power Ventures, a wholly-owned subsidiary of Resurgent Power Ventures, has signed a share purchase agreement with a consortium of lenders led by the State Bank of India (SBI) to to acquire a 75.01% stake in Prayagraj Power Generation.
Resurgent Power Ventures is supported by Tata Power and ICICI Bank.
The financial details of the transaction were not disclosed.

Prayagraj Power, a unit of Jaiprakash Associates, operates the 1,980 MW Bara Stress Station.
Resurgent and JSW Energy objected to regaining control of the plant in recent months. As FE reported in August, JSW Energy agreed to pay about 6,200 crore rupees for the power plant, exceeding Resurgent's earlier bid of 60,086 crores. Both companies had agreed to badume the tax liabilities of the factory raising to about 2,856 crores of rupees.

It would be the second resolution concerning stressed energy badets after the September 11th Supreme Court asked the RBI, banks and others not to invoke insolvency. . proceedings against defaulting companies in accordance with the February 12 mandate of the bank regulator up to its orders. According to other sources, SKS Power's 1,200 MW Binjkote units resulted in a resolution outside the NCLT after the recovery of the SC.

SBI is the main lender and other consortium bankers with an exposure of over 500 crore at Punjab National Bank, Indian Overseas Bank, Bank of India, LIC and Union Bank of India. The total outstanding debt of the plant is about 11,494 Crore.
Although the fuel linkage and power purchase agreement is tied to 90% capacity, plant utilization levels were low due to the unavailability of coal in because of the lack of working capital facilities.

The plant entered into a 25-year PPA with five Uttar Pradesh utilities in 2008 for the sale of 90% of the energy produced. In August 2013, she signed a fuel supply agreement with Northern Coalfields for the supply of 6.95 MTPA of coal. The project was put into operation 33 months after the scheduled date due to delays in the transfer of land by UP, a slow injection of equity by the developer, an increase in the variation of the rates exchange rate, interest rate, cost of equipment and labor under the contract and interest during construction due to