Tata Power buys 75.01% of embattled 1,980MW Bara power plant

It won its bidding fight against JSW Energy.

Resurgent Power Ventures’ subsidiary Renascent Power, a joint venture between Tata Power, ICICI Bank, and other global investors, agreed to purchase a 75.01% stake in Prayagraj Power Generation Company Limited (PPGCL) which owns a 1,980MW supercritical power plant in Uttar Pradesh, also known as the Bara power plant.

According to an announcement, a signed share purchase agreement (SPA) will be subject to customary approvals from regulatory authorities and the transaction is expected to be closed over the next few months.

Local media report that Resurgent Power Ventures and JSW Energy have been wrestling to take over the embattled power plant. In August, the latter agreed to pay $862.25m and beat the former’s previous offer of $846.39m.

According to The Financial Express, even if the plant has fuel linkage and a power purchase agreement (PPA) tied up for 90% of its capacity, the utilisation levels of the plant have been low due to non-availability of coal on account of lack of working capital facilities. It entered into a 25-year PPA with five distribution utilities of Uttar Pradesh in 2008.

Also Read

REDC to develop 320 MW seawater pumped storage hydropower project

AboitizPower launches 49 MW hybrid BESS project

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit