Adani, Tata, Sterlite and Power Grid submit bids to buy UP Transco
POWER & RENEWABLE ENERGY

Adani, Tata, Sterlite and Power Grid submit bids to buy UP Transco

Adani, Tata Power, Sterlite and state-owned Power Grid Corporation of India have presented binding bids to acquire South East UP Power Transmission Company.

It came after the power utility's majority shareholder Isolux Corsan filed for bankruptcy in Spain, leaving the local unit to fend for itself. Tata Power has proposed through Singapore-based Resurgent Power, in which it owns a 26% stake through a subsidiary.

An executive told the media that the tenders have not been opened till now and would be checked for legal compliance before negotiations are held with the bidders. The power transmission firm was put up for sale under the Insolvency and Bankruptcy Code (IBC) by its lenders in July 2020.

A spokesperson for Tata Power told the media that the firm continues to explore and evaluate various growth opportunities including in the transmission space. As shown earlier, the firm is looking at both greenfield and M&A transmission opportunities directly and through its stressed asset platform, Resurgent Power Ventures Pte Ltd.

A spokesperson for Sterlite told the media that the transmission firm is always looking at growth opportunities. But as a policy, they can neither confirm nor deny their involvement in any specific opportunity. As many as eight parties took interest in the preliminary bidding phase. Torrent Power, Megha Engineering, RECPDCL and a sovereign wealth fund had also presented expressions of interest in March. But ultimately, not all bid for the transmission utility.

Isolux Corsan had obtained a 35 year concession to construct a 1,600 km of the power transmission network in Uttar Pradesh in 2011. It had taken on loans worth Rs 4,500 crore from Indian lenders to finance the construction. The Madrid-based firm has constructed lines and substations within a 600 km stretch near Aligarh that are already operational. Of the remaining, nearly one third is complete.

Uttar Pradesh Power Corporation (UPPCL), the master electricity distribution firm in the state, pays South East UP Power Transmission Company for carrying power according to the concession agreement. The Union government has allocated electricity transmission lines among assets that it will monetise alongside airports, sports stadiums and ports in its budget announcements.

The private sector has been consistently demanding that more transmission lines must be auctioned to them under the tariff-based competitive bidding method. Private players have only a 5% stake in the power transmission sector yet. It differs sharply from the power production sector, where private players estimate about half the capacity.

Image Source


Also read: Govt to introduce 17 islanding schemes for power supply

Adani, Tata Power, Sterlite and state-owned Power Grid Corporation of India have presented binding bids to acquire South East UP Power Transmission Company. It came after the power utility's majority shareholder Isolux Corsan filed for bankruptcy in Spain, leaving the local unit to fend for itself. Tata Power has proposed through Singapore-based Resurgent Power, in which it owns a 26% stake through a subsidiary. An executive told the media that the tenders have not been opened till now and would be checked for legal compliance before negotiations are held with the bidders. The power transmission firm was put up for sale under the Insolvency and Bankruptcy Code (IBC) by its lenders in July 2020. A spokesperson for Tata Power told the media that the firm continues to explore and evaluate various growth opportunities including in the transmission space. As shown earlier, the firm is looking at both greenfield and M&A transmission opportunities directly and through its stressed asset platform, Resurgent Power Ventures Pte Ltd. A spokesperson for Sterlite told the media that the transmission firm is always looking at growth opportunities. But as a policy, they can neither confirm nor deny their involvement in any specific opportunity. As many as eight parties took interest in the preliminary bidding phase. Torrent Power, Megha Engineering, RECPDCL and a sovereign wealth fund had also presented expressions of interest in March. But ultimately, not all bid for the transmission utility. Isolux Corsan had obtained a 35 year concession to construct a 1,600 km of the power transmission network in Uttar Pradesh in 2011. It had taken on loans worth Rs 4,500 crore from Indian lenders to finance the construction. The Madrid-based firm has constructed lines and substations within a 600 km stretch near Aligarh that are already operational. Of the remaining, nearly one third is complete. Uttar Pradesh Power Corporation (UPPCL), the master electricity distribution firm in the state, pays South East UP Power Transmission Company for carrying power according to the concession agreement. The Union government has allocated electricity transmission lines among assets that it will monetise alongside airports, sports stadiums and ports in its budget announcements. The private sector has been consistently demanding that more transmission lines must be auctioned to them under the tariff-based competitive bidding method. Private players have only a 5% stake in the power transmission sector yet. It differs sharply from the power production sector, where private players estimate about half the capacity. Image Source Also read: Govt to introduce 17 islanding schemes for power supply

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?