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Tata Power Emerges Highest Bidder to Buy UP Transco

Tata Power has emerged the highest bidder for South East UP Power Transmission Company, beating four other bidders with Rs 3,000 crore offer to buy the transmission firm under insolvency process.

 

Tata Power had submitted a final bid on 30 October 2021 through its subsidiary Resurgent Power Ventures.

 

The lenders will now vote on the Tata bid and then approach their respective boards for final approval.

 

Resurgent Power Ventures is 26 percent owned by Tata Power. Its other shareholders are ICICI Bank, State General Reserve Fund of Oman and the Kuwait Investment Authority.

 

South East UP Power Transmission Company was admitted for Insolvency and Bankruptcy Code (IBC) proceedings by the National Company Law Tribunal (NCLT) on the lenders' request last year after owner Grupo Isolux Corsan filed for bankruptcy in Spain.

 

The Madrid-based Isolux Corsan had won 35-year concession to build and operate a power transmission network in Uttar Pradesh spanning 1,600 km in July 2011.

 

It took loans of Rs 3,100 crore from local lenders to finance the project. However, due to its financial troubles in its home country and in its US operations it ended up filing for bankruptcy.

 

Indian lenders then took over the local unit and approached NCLT to start a sale process to recover their loans.

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