(MENAFN- IANS)
Chennai, July 28 (IANS) The beleaguered IL&FS group on Thursday said it has completed to sale transactions that netted a total of about Rs.77.5 crore.
The two sale deals under IL&FS' energy portfolio are Urjankur Shree Tatyasaheb Kore Warana Power Company Limited (Urjankur Warana) and IL&FS Energy Development Company Limited (IEDCL) Energy Advisory Business division.
According to IL&FS, it sold its 33.33 per cent stake in Urjankur Warana to Shree Tatyasaheb Kore Warana Sahakari Sakhar Karkhana Ltd (HSF or Host Sugar Factory).
Urjankur Warana is a special purpose vehicle (SPV) jointly promoted by IEDCL, holding 33.33 per cent stake, and Urjankur Nidhi Fund, holding 66.67 per cent stake.
IEDCL also holds 27.75 per cent stake in Urjankur Nidhi Trust along with Maharashtra Energy Development Agency (with 50 per cent stake) and Shree Datta Shetkari Sakhar Karkhana Ltd, holding the balance 22.25 per cent stake.
With this transaction, IL&FS group has sold its 33.33 per cent stake in Urjankur Warana and its 27.75 per cent stake in Urjankur Nidhi Trust to HSF at an aggregate consideration of Rs 62.5 crore.
According to IL&FS, the Urjankur Warana owns a 44 MW bagasse-based cogeneration power plant (Plant) in Kolhapur District, Maharashtra that is set up on land leased from HSF.
As per the Project Development Agreement (PDA), HSF supplies bagasse to Urjankur Warana free of cost, as fuel for power generation.
The surplus power generated by Urjankur Warana is being sold to the Maharashtra State Electricity Distribution Company Ltd (MSEDCL), as part of long term power purchase agreement (PPA) valid up to March 2026.
As regards the second sale, IL&FS group sold its Energy Advisory business part of IEDCL to PTC India Ltd for about Rs.15 crore.
The entire advisory business undertaking with its contracts and projects team, comprising approximately 300 personnel (employed directly and indirectly), will now move to PTC India, IL&FS said.
Proceeds from both these sale transactions would be used by the new IL&FS board towards reducing overall debt as per the Resolution framework approved by National Company Law Appellate Tribunal (NCLAT), IL&FS said.
The IL&FS Board, in its update in March 2022, had stated it had addressed Rs.55,000 crore debt, comprising Rs 21,000 crore from monetisation of assets, Rs 20,000 crore of Invit and cash balances and Rs 14,000 crore of claims filed with courts, while maintaining its aggregate resolution estimate at Rs 61,000 crore.
--IANS
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