Adani and Torrent Group have submitted expressions of interest (EoIs) to buy South East Uttar Pradesh Power Transmission Company (UPPTC) after its owner, Isolux Corsan, filed for bankruptcy in Spain and informed Indian lenders of its inability to continue to finance the local affiliate. The enterprise value of the local affiliate’s business is pegged at approximately Rs 6,000 crore.
Isolux Corsan had bagged a 35-year concession to build 1,600 km power transmission network in the state in 2011. It had borrowed an amount of Rs 4,500 crore from local lenders to fund the construction.
Moreover, Sterlite Power and Megha Engineering and Sovereign Wealth Funds are also expected to join the process after they sounded out lenders about their intent. The earlier deadline was 5 March 2021; however, it has been extended by one month to accommodate the late bidders.
South East Uttar Pradesh Power Transmission Company was admitted for Insolvency and Bankruptcy Code (IBC) proceedings by the National Company Law Tribunal (NCLT) on 16 July 2020 on the request of its largest creditors, the Power Finance Corporation and Axis Bank.
The transmission infrastructure is partially complete. The company has built lines and sub-stations within 600 km stretch near Aligarh, which are already operational.
Of the remaining infrastructure of around 1,000 km, about 30 percent has been completed. The Uttar Pradesh Power Corporation (UPPCL), which is the master discom in the state, pays South East Uttar Pradesh Power Transmission Company for carrying the power, as per the terms of the concessions agreement.
