The National Company Law Tribunal (NCLT) approved the resolution plan submitted by NHPC Limited for Lanco Teesta Hydro Power Limited, a special purpose vehicle, incorporated by Lanco Infratech Limited (LITL) for implementation of the Teesta-VI hydro power project. As per the resolution plan, NHPC will pay an amount of Rs 8,777.4 million to the financial creditors and Rs 111.2 million to the operational creditors of Lanco Teesta Hydro Power.
The NCLT had initiated the insolvency proceedings under the Insolvency and Bankruptcy Code against Lanco Teesta Hydro Power in March 2018. The insolvency proceedings were initiated after the filing of a petition by the company’s lead bank ICICI Bank due to non-repayment of a loan of Rs 3.13 billion by LITL. Subsequently, NHPC had emerged as the successful resolution applicant for the project.
LITL and the Government of Sikkim were jointly implementing the 500 MW (4×125 MW) project in South Sikkim district of Sikkim. Currently, 50 per cent of construction work has been completed on the project.