"IL&FS Initiates Bidding Process for Stake Sale in Tamil Nadu Power Unit"

IL&FS, a prominent financial services company, has initiated the sale of its stake in IL&FS Tamil Nadu Power Company Limited (ITPCL), a significant asset within its portfolio. Expressions of Interest (EOI) are being invited from potential bidders, with the deadline set for December 18, 2023.

ITPCL, a subsidiary of IL&FS Energy Development Company Limited (IEDCL), itself an IL&FS Group company, is currently the focus of the group's divestment strategy. IL&FS is seeking to completely exit this asset, which includes the divestment of its entire shareholding in ITPCL. This shareholding comprises an equity stake of 92.42 per cent owned by IEDCL and IL&FS, along with FCCDs (Foreign Currency Convertible Debentures) amounting to ₹240 Crore owned by IEDCL.

In line with IL&FS's resolution framework, ITPCL recently underwent a restructuring of its outstanding debt with the approval of its lenders. The company is in the process of filing an application with the National Company Law Appellate Tribunal (NCLAT) for conversion from an Amber to a Green Category company.

Furthermore, as part of its debt reduction efforts, ITPCL completed an interim distribution of ₹2,150 crore to senior secured creditors on September 30, resulting in a substantial reduction of its outstanding debt by over ₹1,900 crores.

ITPCL, established with the goal of setting up an integrated 3,180 MW thermal power plant, currently operates a 1,200 MW thermal power plant with two units of 600 MW each in Cuddalore, Tamil Nadu, situated approximately 50 km from Pondicherry. The company has executed a long-term Power Purchase Agreement (PPA) for Unit 1 with Tamil Nadu Generation and Distribution Co. Ltd (TANGEDCO) for a duration of 15 years.

Additionally, ITPCL holds a license for coal block mining in Upau, South Kalimantan, Indonesia, covering an expansive 5,908 hectares. The company is also in the process of constructing a captive port adjacent to the ITPCL power plant, enhancing its operational capabilities and strategic positioning in the industry.

HBL