The power utility’s majority shareholder Isolux Corsan filed for bankruptcy in Spain, leaving the local unit to stand for itself. Following this, the power transmission company was put up for sale under the Insolvency and Bankruptcy Code (IBC) by its lenders in July last year. Now, Tata Power, Adani, Sterlite and state-owned Power Grid Corporation of India have given their final binding bids to buy South East UP Power Transmission Company, the sources stated.
Tata Power has bid through its 26% stake holding, Singapore-based Resurgent Power. The bids have not been opened yet and will be checked for legal compliance before negotiations are held with the bidders.
Around eight parties had shown interest in the preliminary bidding phase. Torrent Power, Megha Engineering, REPDCL and a sovereign wealth fund had also submitted their bid but not all finally bid for the transmission utility.
Uttar Pradesh Power Corporation (UPPCL), the master of electricity distribution company in the state, funds South East UP Power Transmission Company for carrying power as per the concession agreement. The Union Government has reserved electricity transmission lines among assets that it will monetize alongside ports, airports and sports stadiums in its budget announcements.