Renascent Power, a wholly-owned subsidiary of Resurgent Power Ventures, the joint venture of the Indian utility Tata Power and the ICICI Bank, has agreed to acquire a 75.01% interest in Prayagraj Power Generation Company Limited (PPGCL), which owns the 1,980 MW Bara supercritical coal-fired power plant in Uttar Pradesh (India). The closing of the US$862m transaction is expected over the next few months once all customary approvals from regulatory authorities are obtained.
Resurgent has been struggling to acquire the power plant with the Indian utility JSW Energy and the two contenders have been counter-bidding each other to take over the plant over the last few months.
The 1,980 MW power plant includes three 660 MW units. Even though it has fuel linkage and a power purchase agreement (PPA) with five distribution utilities of Uttar Pradesh tied up for 90% of its capacity, its utilisation levels have remained low due to non-availability of coal on account of lack of working capital facilities.
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