Power Finance Corporation Limited has successfully resolved the country’s largest stressed asset in the power transmission sector of South East U. P. Power Transmission Company Limited.
The project, comprising about 1500 km of 765 kV & 400 kV transmission lines and 5 sub-stations in Uttar Pradesh, will significantly benefit the consumers of Uttar Pradesh.
PFC was the Lead Financial Institution for the project, with REC and Bank of India as co-lenders in the consortium. This is a landmark resolution through the Corporate Insolvency Resolution Process (CIRP) under the IBC (2016), which has resulted in lenders recovering in excess of 100% of the principal amount.
However, the project was originally allocated by Uttar Pradesh Power Transmission Company Limited on a BOOT basis to Isolux Corsan Concessions SA of Spain in 2011 but has now been acquired by Resurgent Power Ventures Pte. Ltd.