State-owned hydro power giant NHPC board on Tuesday approved a proposal to start merger of Lanco Teesta Hydro Power Ltd into the company.
The NHPC had bagged the 500 MW Teesta VI hydro power project under corporate insolvency resolution process.
Lanco Teesta Hydro Power Ltd was executing the 500 MW (125 MWx 4) Teesta VI hydro project on Teesta river in Sikkim.
"Board of Directors of NHPC Ltd in its meeting held today i.e. Tuesday, October 20, 2020, has approved the proposal to initiate the process of merger/ amalgamation of Lanco Teesta Hydro Power Ltd (a wholly-owned subsidiary of NHPC Ltd) with NHPC Ltd... subject to approval of Government of India," a BSE filing said.
The project will supply power at a levelised tariff of Rs 4.07 per unit and is likely to be completed in the next four years.
Earlier, the Hyderabad bench of the National Company Law Tribunal (NCLT) had approved the resolution plan of NHPC on July 26, 2019, for debt-ridden Lanco Teesta.
This was the first time a state-owned company had bagged a project under the IBC (Insolvency and Bankruptcy Code).
The project will be implemented at an estimated cost of Rs 5,748.04 crore (on July 2018 price level), which includes a bid amount of Rs 897.50 crore for the acquisition.
In March 2019, the Cabinet Committee on Economic Affairs had approved the proposal for acquisition of Lanco's 500 MW Teesta Hydroelectric Power Project, and execution of balance works for the Teesta VI Project.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU