500 MW Lanco Teesta Project of around INR 900 crore to be acquired by NHPC
Published Date | 2018 December 7
NHPC, state owned hydro power generation Company is all set to acquire the Lanco Teesta hydro power project of INR 900 crore which will boost the hydro power market of the country.India: NHPC, which is a state-owned hydropower generation company, has bagged debt-laden 500 MW Lanco Teesta hydropower project under insolvency proceedings for a value of around INR 900 crore. This is expected to boost the project and also increase the generation of hydropower in the country. NHPC is anticipated to complete the takeover within the next three to four months. The project can then be completed in the next three to four years as the construction is nearly 50 per cent complete. A senior official of the company said NHPC Ltd has emerged as the successful bidder for the 500 MW Lanco Teesta Hydro Power project. NHPC will acquire the project for around INR 900 crore." NHPC has also confirmed the news about the development in a BSE filing. The filing said, “NHPC Ltd has been declared as the successful resolution applicant by the committee of creditors of Lanco Teesta Hydro Power Ltd.” According to BlueWeave Consulting, Lanco’s Teesta Hydro Power is constructing a 500-megawatt (125 MWX4) hydropower project on the river Teesta in Sikkim which is under a hold for now since the project has been burdened with debt. NHPC has officially acquired the project to invest in it and take forward the construction. However, the company will still be subject to final approval by the National Company Law Tribunal (NCLT). According to the procedure, NCLT will call for objections on the deal before they approve it. Once the deal is approved by the NCLT, NHPC will then seek approval of the Public Investment Board and the Cabinet Committee on Economic Affairs. The official of the company said, the company will be providing INR 10 crore bank guarantee to initiate the deal while the remaining payments will be done once all the required approvals are fetched. This deal is expected to give a major boost to the Teesta hydropower project and in turn increase, the growth of the hydropower industry in the country since the demand for renewable resources is constantly increasing. According to the report by BlueWeave Consulting on “Global Hydropower Market Size, Share & Trends Analysis Report by Type (Large Hydro, Small hydro, Others), and by Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, the market is growing significantly with a healthy CAGR. Demand for reliable, affordable and cleaner energy is a driving force for the growth of the market. Hydropower has been one of the substantial contributors to the renewable sources of energy. Demand for electricity is constantly growing due to the increase in population, urbanisation, and industrialization. Government initiatives to provide better and more renewable sources of energy for the generation of electricity are estimated to surge the growth of hydropower market.