Tata Power and Resurgent have signed a share purchase agreement to buy a 75 percent stake in Prayagraj Power. Resurgent Power is backed by Tata Power Co. Ltd and ICICI Venture Funds Management Co. Praveer Sinha, MD & CEO of Tata Power spoke to CNBC-TV18 about the agreement.
“The transaction has been closed yesterday whereby we have signed the share purchase agreement with SBI and the other 17 lenders and based on that 75.01 percent stake has been taken over by Renascent which is a subsidiary of Resurgent Power. That transaction will give us a foothold in Uttar Pradesh (UP) to run this power plant,” Sinha said.
“One-time settlement amount that has been fixed is Rs 6,000 crore and that is the amount that we would be paying to the lenders for settling the total amount of debt as well as the equity that we are taking in. So we give them Rs 6,000 crore and the 75 percent stake comes to us,” he added.