Renascent Power Ventures Pvt Ltd, a joint venture of Tata Power and ICICI Bank, has acquired 75 percent stake in the Prayagraj Power Generation Co Ltd (PPGCL). Renascent Power Ventures Pvt Ltd is a wholly-owned subsidiary of Resurgent Power Ventures Pte.
PPGCL is the biggest power plant in Prayagraj, formerly known as Allahabad in Uttar Pradesh. The plant is owned by Manoj Gaur, leading real estate industrialist. It is a 1,980 MW coal-based electricity generation unit and a subsidiary of Jaiprakash Power Ventures Ltd owned by Gaur.
The plant has sold power projects of about 3,800 MW capacity in the last few years to settle debt of close to Rs 21,000 crore.
In a regulatory filing, Tata Power stated, “Renascent Power Ventures Pvt Ltd (Renascent) has today acquired 75.01 per cent equity stake and 27,00,00,000 preference shares of Rs 10 each of Prayagraj Power Generation Co Ltd.”
Jaiprakash Associates Ltd and banks hold the remaining 25 percent of the interest. Tata Power holds 26 percent of the stakes of Singapore based Resurgent Power. The rest of the 74 percent stakes is held by ICICI Bank, Power Platform Ltd, and Kuwait Investment Authority.
The coal-fired power plant currently operates at 62 percent of capacity or plant load factor (PLF). It was won by Jaypee Group through competitive bidding, quoting a tariff of Rs 3.06 per unit.