State-owned NHPC has bagged debt-laden Lanco's 500 MW Teesta hydro power project under insolvency proceedings for a tentative value of Rs. 900 crore, a senior official said.
NHPC is expected to complete the takeover in the next three to four months and can finish the project in three to four years as its construction is almost 50 per cent complete, the official added.
"NHPC Ltd. has emerged as the successful bidder for the 500 MW Lanco Teesta Hydro Power project. NHPC will acquire the project for around Rs. 900 crore," the senior company official told PTI.
Earlier in the day, NHPC also confirmed the development in a BSE filing.
"...NHPC Ltd has been declared as the successful resolution applicant by the committee of creditors of Lanco Teesta Hydro Power Ltd," it said.
However, the company said this would be subject to final approval by the National Company Law Tribunal (NCLT).
Lanco Teesta Hydro Power is building a 500-megawatt (125 MWX4) hydropower project on the Teesta river in Sikkim.
As per the procedure, the NCLT would call for objections on the deal before approving it. Once approved by the NCLT, NHPC would seek approval of the Public Investment Boardand the Cabinet Committee on Economic Affairs.
The official also said the company would provide bank guarantee of Rs 10 crore to initiate the deal and make the remaining payment after all required approvals.
NHPC has installed generation capacity of 7071 MW while 3800 MW is under construction.
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