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With Lanco’s 500-MW Teesta hydropower project under its umbrella, NHPC has become the first PSU to win an asset under the insolvency resolution framework.
After clearance from the stressed asset’s Committee of Creditors (CoC), Power Ministry and Union Cabinet, NHPC’s resolution plan for the Lanco project was approved by the Hyderabad Bench of the National Company Law Tribunal Bench last Friday.
The project is strategically important for NHPC, as it has other projects that are impacted by its operations. NHPC had emerged as the highest bidder with a bid amount of ₹907 crore. The investment proposal was approved by the Cabinet Committee on Economic Affairs on March 7.
“Teesta-VI is strategically located in respect of NHPC projects that are upstream and downstream of this project. Therefore, it was appropriate to have this project under NHPC for coordinated operation and control of (other) NHPC projects in the cascade,” said Balraj Joshi, CMD of NHPC.
“This was a good opportunity considering that all major structures of the project are under various stages of construction and all the clearances are in place,” Joshi told BusinessLine .
Highlighting the challenges that a PSU faces, Joshi said: “Making a commercially viable detailed project report for getting approval from various appraising departments like Central Electricity Authority, Central Water Commission, Geological Survey of India, Central Soil and Materials Research Station, and other appraising groups is a challenge. Getting government clearance and sanction for investment in a limited timeframe was the one of the challenges. However, with the proactive approach of the Ministry of Power, these clearances could be obtained in a record time of three months.”
But the work has just begun for the company and the long over-due project. “Project works are in various stages of completion. Some modifications in intake and barrage structure to cater to codal requirements, major portions of tunnelling works and erection of electro-mechanical and hydro-mechanical works are remaining. We expect to complete the project in five years from now. We are confident of achieving the commissioning within that period,” Joshi said.
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