NHPC-Lanco Teesta merger may get MCA approval

28 Jun 2023 , 11:17 AM

The merger of state-owned NHPC and Lanco Teesta Hydro Power Ltd is expected to be approved by the Ministry of Corporate Affairs (MCA) in August following a final hearing, according to a government official.

According to an official from the Ministry of Corporate Affairs (MCA), in February, an order was issued by the MCA mandating stakeholders and creditors to approve the merger of NHPC and Lanco Teesta. Once the company submits both approvals, the ministry will conduct a conclusive hearing, expected to take place in August, following which the approval will be granted.

The company is expected to submit the approval of stakeholders and creditors to the Ministry of Corporate Affairs within the next two months.

Under the corporate insolvency resolution process, NHPC was awarded the 500 MW Teesta VI hydropower project. Previously, on July 26, 2019, the Hyderabad bench of the National Company Law Tribunal (NCLT) approved NHPC’s resolution plan for debt-ridden Lanco Teesta. 

This was the first time a state-owned enterprise had been awarded a project under the IBC (Insolvency and Bankruptcy Code).

Lanco Teesta Hydro Power Ltd is currently constructing the Teesta VI hydropower project, a 500 MW (125 MW x 4) initiative located on the Teesta River in Sikkim.

At around 11.13 AM, NHPC was trading 0.33% higher at Rs 45.70, against the previous close of Rs 45.55 on NSE. 

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