Earlier the facility utility’s owner, Isolux Corsan, filed for bankruptcy in Spain, leaving the local affiliate to work on its own. Tata Power has bid via Singapore-based Resurgent Power, during which it owns a 26 percent stake through a subsidiary, consistent with a report in ET which cited people within the know as saying.
An executive with knowledge of the matter told the financial daily that the bids haven’t been opened yet and can be scrutinised for legal compliance before talks are held with the bidders.
In July 2020, the facility transmission company was placed on the block under the Insolvency and Bankruptcy Code (IBC) by its creditors.
A spokesperson for Tata Power declined to divulge any details on particular projects, adding that the firm continues to explore and assess various growth opportunities including within the transmission space.
The daily quoted a spokesperson for Resurgent Power Ventures Pte Ltd as saying, “As indicated earlier, the corporate is watching both greenfield and M&A transmission opportunities directly also as through its stressed asset platform.”
A spokesperson for Sterlite said the transmission company always explores a variety of options that include a possible growth opportunity, and as a policy matter, the corporate can “neither confirm nor deny its involvement” in any specific opportunity.
Around eight parties had evinced interest shown interest within the early bidding phase. Torrent Power, Megha Engineering, and a sovereign wealth fund had also submitted expressions of interest in March. However, all finally didn’t bid for the transmission utility.
In 2011, Isolux Corsan had bagged a 35-year concession to create 1,600 km of the power transmission network in Uttar Pradesh, and it had taken on loans worth Rs 4,500 crore from Indian lenders to fund the development.
The Spanish company has built lines and substations within a 600 km stretch near Aligarh, which are already functioning. Uttar Pradesh Power Corporation (UPPCL), the most electricity distribution company within the state, pays South East UP Power Transmission Company for carrying power as per the concession pact.
So far, private companies have a meager 5 percent share within the power transmission sector. during a sharp contrast, within the power generation sector, private entities account for nearly 50 percent of the capacity.