Debt-laden Infrastructure Leasing & Financial Services (IL&FS) has put its stake in IL&FS Tamil Nadu Power Company (ITPCL) up for sale and has invited expressions of interest from potential bidders.
ITPCL is a subsidiary of IL&FS Energy Development Company (IEDCL), another IL&FS Group company. IL&FS is looking divest its complete shareholding in ITPCL, which is held through a 92.42% stake by IEDCL and IL&FS and Foreign Currency Convertible Debentures of Rs 240 crore owned by IEDCL, the company said in a statement.
ITPCL was incorporated to set up a 3,180 MW thermal power plant. Currently, it operates a 1,200 MW thermal power plant, with two units of 600 MW each, based in Cuddalore in Tamil Nadu.
The company has executed a long-term Power Purchase Agreement (PPA) for Unit 1 with Tamil Nadu Generation and Distribution Co (TANGEDCO) for 15 years. ITPCL also has a license to mine coal block in Upau, South Kalimantan, Indonesia, covering 5,908 hectares, and is constructing a captive port adjacent to the ITPCL power plant.
IL&FS, as a part of its resolution framework, has recently restructured its outstanding debt with lenders’ approval and is in the process of filing at the National Company Law Appellate Tribunal (NCLAT) for conversion to a green category company from amber.
IL&FS has repaid debt of about Rs 35,650 crore as of September 30, marking a significant progress in its debt resolution process. The payment was by way of monetisation of assets, auto debits by banks and debt repayment (including interim distribution) across entities. The group has also completed a total payment of about Rs 10,000 crore by way of interim distribution across 14 companies – including two vertical holding companies and the holding company IL&FS.
