The Sikkim government had awarded Rangit project to Jal Power Corporation on November 1, 2004.
State-owned power firms NHPC, NTPC, NEEPCO and THDCI along with few private sector players are likely to bid for Jal Power Corporation's stressed Rangit hydroelectricity project in Sikkim, which is undergoing insolvency proceedings.
"NHPC, NTPC, NEEPCO (North Eastern Electric Power Corporation) and THDCI have planned to bid for the 120-megawatt Rangit Stage IV project. Besides, few private sector players are also likely to be in the fray to grab the project," a source said.
The source added, "The last date for submitting the bid is October 31, 2019. The insolvency proceedings of the project are going on in the National Company Law Tribunal's (NCLT) Hyderabad Bench."
The source also said the state-run firms are vying for getting cheaper assets through the NCLT route.
Earlier this week, state-run hydro power giant NHPC concluded a definite agreement to acquire Lanco Teesta VI Hydro Power Project in Sikkim at a bid-out price of about Rs 907 crore. The total investment approval for the project is Rs 5,748.04 crore which includes Rs 907 crore bid amount.
Teesta VI is the first project which is being acquired through the NCLT route by a public sector undertaking.
The source said that buoyed by the Teesta VI win by NHPC, its peers NTPC, NEEPCO and THDCI are trying their hand to acquire stressed power assets through the NCLT route.
These firms are under the administrative control of the power ministry.
The Sikkim government had awarded Rangit project to Jal Power Corporation on November 1, 2004. An agreement for setting up of Rangit Stage-IV was inked with the state on December 9, 2005, on a build-own-operate-transfer (BOOT) basis.The project envisages installation of three units of 40 megawatts each.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.