NCLT Hyderabad Approves NHPC resolution plan for Rangit-IV Project in Sikkim

NCLT Hyderabad Approves NHPC resolution plan for Rangit-IV Project in Sikkim

The National Company Law Tribunal (NCLT), Hyderabad bench approved National Hydroelectric Power Corporation (NHPC) resolution plan for takeover of 120 MW Rangit-IV HE Project of Jalpower Corporation Limited (JPCL) in Sikkim as going concern vide its order on 24th December, 2020.

State owned NHPC Limited, India's premier hydropower company has inked a Definitive Agreement for implementation of the Approved Resolution Plan for take-over of Rangit-IV Hydro Power project based in Sikkim.

NHPC had submitted its Resolution Plan and was declared the successful resolution applicant by Committee of Creditors (CoC) on 24th January, 2020. The CoC approved Resolution Plan was filed by Resolution Professional with Hon'ble NCLT Hyderabad Bench on 28th January, 2020.

The Definitive Agreement for implementation of the Approved Resolution Plan was signed between NHPC, Resolution Professional and Secured Financial Creditors- Power Finance Corporation Limited and Punjab National Bank in presence of Y K Chaubey, Director (Tech) of NHPC; R P Goyal, Director of Finance NHPC and other senior officers from NHPC and Power Finance Corporation Limited.

The company currently has under-construction hydropower projects aggregating installed capacity of two thousand eight hundred megawatts. Besides, projects aggregating five thousand nine hundred and forty-five megawatts are under clearance or approval stage. Currently prominent among projects under construction is the two-thousand-megawatt Lower Subansiri project straddling situated in Arunachal Pradesh and Assam.

The twenty gigawatts of installed capacity will include hydropower as well as other clean energy sources like solar. This will cover capacity owned by the company, as well as that by its joint ventures and subsidiaries.

NHPC will make an upfront payment of Rupees one hundred sixty-five crore and the total cost of the project is said to be estimated as Rupees nine hundred forty-three crore. Jalpower Corporation Limited is the second company after Lanco Teesta Hydro Power Ltd (LTHPL) to be acquired through NCLT process by NHPC.