Financial Briefs

India and overseas

NCLT approves NHPC’s bid for Lanco Teesta Hydro Power Limited (India)

The National Company Law Tribunal (NCLT) has approved NHPC Limited’s Rs 9.07 billion bid for the debt-ridden Lanco Teesta Hydro Power Limited. As per the resolution plan, NHPC will pay Rs 8.77 billion to the financial creditors and Rs 0.11 billion will go to the operational creditors of Lanco Teesta Hydro Power. NHPC will fund the deal through a debt-equity ratio of 70:30.

NTPC to seek shareholder approval to raise Rs 150 billion

NTPC will seek shareholders’ approval to raise Rs 150 billion through the issuance of bonds or debentures, and to increase the borrowing limit to Rs 2 trillion. The company will raise funds on a private placement basis in the domestic market. The funds raised will be used for capex, working capital and general corporate purposes.

PFC seeks buyers for RIPL’s Amaravati thermal power project

The Power Finance Corporation (PFC) has sought bids for consortium loans worth Rs 82.15 billion given to RattanIndia Power Limited (RIPL) for its 1,350 MW Amaravati thermal power project Phase I, which is awaiting resolution. The project’s liabilities include term loans of Rs 69.4 billion, working capital loans worth Rs 8.15 billion and non-fund-based limits of Rs 4.59 billion. The project lenders have proposed to offer and assign their existing security, including rights on project assets and pledge rights on shares of RIPL, as part of the takeover of the outstanding debt.

PFC’s board approves proposal to raise Rs 700 billion

PFC board has approved a proposal to raise Rs 700 billion through the issuance of bonds, debentures, notes and debt securities from domestic and international markets on a private placement basis. Once approved by the shareholders, the company would be able to raise the stipulated amount within a period of one year from the annual general meeting to be held on August 27, 2019.

Tata Power to divest stakes in its JVs

Tata Power has decided to sell its stakes in two joint ventures (JVs) – Cennergi in South Africa and Itezhi Tezhi Power Corporation in Zambia – in order to reduce its financial liabilities and focus on the domestic market. The company is looking for buyers to divest its 50 per cent stake each in the two JVs. The company has also signed an agreement to sell its 30 per cent stake in PT Arutmin Indonesia and associated companies in coal trading and infrastructure for an aggregate consideration of $401 million.

ADB sanctions Rs 19.25 billion for Tripura projects

The Asian Development Bank (ADB) has sanctioned a Rs 19.25 billion project for the upgradation of power generation and distribution in Tripura. The project entails capacity augmentation of the Rokhia project from 63 MW to 120 MW at an estimated cost of Rs 6.99 billion and modernisation of the Gumti hydroelectric project at an estimated cost of Rs 12.25 billion. In a separate development, the North East Council has sanctioned Rs 127 million for the upgradation of the 49.15 km Ambassa-Gandacherra transmission line.

Pakistan’s CDWP approves transmission network projects worth PKR 18 billion (Pakistan)

The Central Development Working Party (CDWP), part of the Planning and Development Division of Pakistan’s Planning Commission, has approved three development projects worth PKR 17.8 billion. The projects are now awaiting final approval from the Executive Committee of National Economic Council. The projects approved by the CDWP involve the procurement of the 220 kV Swabi grid station along with associated transmission lines at a cost of PKR 5.83 billion, the 220 kV Nawabshah substation at a cost of PKR 5.8 billion, and a 220 kV mobile grid station along with an emergency recovery system and 500 kV shunt reactors for emergency services at an estimated cost of PKR 6.25 billion. These projects will help strengthen the transmission system, meet additional load demand, and improve the voltage profile, system reliability and efficiency in the power sector.

Morocco’s ONEE to invest MAD 26 billion in the electricity sector by 2023 (Morocco)

Morocco’s Office National de l’Electricité et de l’Eau Potable (ONEE) is planning to invest around MAD 26 billion in the implementation of electricity projects across the country, under its new 2019-23 strategy to improve electricity access across the country. Under the transmission segment, ONEE plans to invest MAD 8.7 billion in the implementation of regional integration projects in Mauritania and Portugal. In the generation segment, around MAD 8.6 billion is envisaged for the construction of power plants of up to 4.3 GW. In the distribution segment, ONEE will invest MAD 8.8 billion towards the reinforcement of electricity access in rural areas and distribution of electricity to 30,900 households across the country.

Energy Australia announces AUS$80 million investment in Mt Piper power plant (Australia)

EnergyAustralia will invest about AUS $80 million in operational upgrades at its Mt Piper power plant near Lithgow to expand the plant’s capacity by 60 MW. The work involves replacing the majority of the internal componentry of the plant’s two turbines aggregating 700 MW. The two turbines will be operational in 2020 and 2021, providing 30 MW of additional power each without having to burn more coal.

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