Indian infrastructure development and finance company IL&FS has invited bids for its stake in its subsidiary, the IL&FS Tamil Nadu Power Company (ITPCL), the Hindu Business Line has reported.
The final date for expressions of interest is 18 December 2023.
ITPCL is one of the biggest assets in the IL&FS Energy Development Company (IEDCL) portfolio.
The company owns a 92.42% equity stake in ITPCL, worth Rs4.2bn ($50.4m).
The sale is part of a framework to restructure IEDCL's outstanding debt with approval from lenders. It is currently in a filing process at the National Company Law Appellate Tribunal to convert from an amber to a green category company.
In September 2023, the Economic Times reported that a majority of IL&FS’ lenders approved the restructuring plan to redistribute Rs3.13bn. The loan repayment schedule was extended until March 2038. Non-convertible debentures will be redeemed by March 2040.
ITPCL was formed to build a 3.18GW thermal power plant. It is currently operating a 1.2GW power plant featuring two 600MW units based in Cuddalore in the southern state of Tamil Nadu.
It has a 15-year long-term power purchase agreement to sell the power from one of the units in Cuddalore to the Tamil Nadu Generation and Distribution Company.
The company also owns a licence to mine coal on a 5,900-hectare site in Upau, South Kalimantan, Indonesia, and is building a port next to the power plant.
