Financial Briefs: India and overseas

India and overseas

REC sanctions Rs 220 billion under new LPS Rules

REC Limited has provided financial assistance of around Rs 220 billion for clearing the outstanding dues of the distribution licensees of Jharkhand, Rajas­than, Chha­ttis­garh and Jammu & Kash­mir under the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022. States such as Rajasthan, Jharkh­and, Tamil Nadu, Maharashtra, Jammu and Kashmir, Ma­dh­ya Pradesh and Uttar Pradesh with pending power purchase dues of almost Rs 960 billion are complying with the rules.

Adani Power to buy DB Power for Rs 70 billion

Adani Power Limited has agreed to ac­quire DB Power Limited at an enterprise value of Rs 70.17 billion. DB Power owns and operates a running 2×600 MW thermal power plant in Janjgir Champa district, Chhattisgarh. The acquisition will help Adani expand its offerings and operations in the thermal power sector in Chhattisgarh. The initial term of the MoU will be till the completion of the acquisition on October 31, 2022, which may be extended by mutual agreement.

ReNew Power ties up $1 billion loan for renewable energy project funding

ReNew Power has tied up with 12 international lenders, led by Rabobank, for ex­ternal commercial borrowing (ECB) project finance loan in the renewables sector. This $1 billion loan has been tied up through an SPV. ReNew will use the funding for its upcoming 1,300 MW hybrid round-the-clock battery-enabled project. It will set up wind and solar projects ac­ross the states of Karnataka, Rajasthan and Maharashtra.

Resurgent Power Ventures receives approval for takeover of SEUPPTCL

The Uttar Pradesh Electricity Regulatory Co­mmission has reportedly approved the takeover of South East UP Power Trans­mission Company Limited (SEUPPTCL) by Resurgent Power Ventures. The joint venture company had emerged as the highest bidder in February 2022, quoting Rs 32.51 billion upfront payment for the stressed transmission asset under insolvency. The National Company Law Tribu­nal cleared the bid in June 2022.

Tata Power Renewable raises Rs 20 billion by issuing 83.6 million shares to BlackRock-backed firm

Tata Power Renewable Energy Limited has raised Rs 20 billion by issuing 83.6 mi­­ll­i­on equity shares to BlackRock-back­ed GreenForest New Energies Bidco Limi­ted. This completes Tranche 1 of the tran­saction. Tranche 2 infusion of Rs 20 billion will be concluded in accordance with the terms of the agreements. The propo­sed investment is expected to fund Tata Power Renewables’ gro­wth plans.

SBI sells distressed KSK Mahanadi loans to Aditya Birla ARC for Rs 16.22 billion

The State Bank of India (SBI) and Varde Partners-backed Aditya Birla Asset Re­con­struction Company Limited (Adit­ya Birla ARC) are finalising a renegotiated bid of Rs 16.22 billion, up from Rs 15.44 billion that ARC offered earlier for the non-performing loans of KSK Mahanadi Power Limited aggregating Rs 38.15 billion. The revised bid will result in a recovery of 42 per cent for SBI.

IndiGrid to acquire Raichur Sholapur Trans­mission Company for Rs 2.50 billion

India Grid Trust (IndiGrid) has signed a share purchase agreement for the acquisition of 100 per cent shareholding and ec­onomic interest, in one or more tran­ches, in Raichur Sholapur Transmis­sion Company Private Limited (RSTCPL), for over Rs 2.5 billion. IndiGrid has acquir­ed the shares from Patel Enginee­ring Li­mited, Simplex Infrastructures Li­mited and BS Limited, each owning a 33.33 per cent stake. RSTCPL operates one single circuit 765 kV transmission li­ne between Raichur and Sholapur, with a line length of around 208 ckt. km. The as­set was fully commissioned in July 2014.

Torrent Power buys Wind Two Renergy for Rs 325 million

Torrent Power Limited has acquired 100 per cent equity share capital in Wind Two Renergy Private Limited (WTRPL) for Rs 325.1 million from Inox Green En­ergy Services Limited. The company has acquired 32.51 million equity shares of WTRPL at a face value of Rs 10 each. WTRPL was incorporated on April 20, 2017, with the objective of electricity ge­neration from renewable energy. It has implemented a 50 MW wind power project in the Kutch district of Gujarat. The electricity generated from the project is supplied under a 25-year power purcha­se agreement with PTC India Limited. The acquisition supports Torrent’s focus area of sustainable growth through rene­wable energy.

Norwegian Climate Investment Fund to take up stake in solar power plant in Rajasthan

Norwegian Climate Investment Fund will take up a 49 per cent stake in a 420 MW solar power plant in Rajasthan, as part of the Norway-India global energy transition partnership. The new Norwegian Cli­mate Investment Fund, managed by Nor­fund and KLP, Norway’s largest pension company, will take stake in the Thar Sur­ya 1 solar energy project for around Rs 2.80 billion. The 420-MWDC (300-MWAC) solar power plant is being built in Ra­­jasthan by Italian firm Enel Green Po­wer. The project will deliver over 750 GWh per year upon commissioning.

Thai PTT sells coal business to Indonesia’s Astrindo for $471 million (Indonesia)

Thai state-owned energy firm PTT Pcl has agreed to sell its coal unit to Indonesia’s PT Astrindo Nusantara Infrastruktur Tbk for $471 million, as the company moves out of the coal business entirely. The sale was aligned with PTT’s strategy to move towards sustainability and clean energy.