Uncompleted Indian hydro-electric projects has new owner

Two companies building an Indian hydro-electric power project have sold the near 85 per cent completed 100 MW power station.

Located on the river Sorang in Himachal Pradesh it was scheduled to come online at the end of the year but the two infrastructure firms, NCC and IL&FS Engineering, have said they have sold the uncompleted project.

NCC holds 67 per cent equity in Himachal Sorang Power, a special purpose vehicle, while IL&FS Engineering holds the balance of 33 per cent, according to the Economic Times. It quoted  YD Murthy, NCC's executive vice-president, as saying, “We have identified an investor and signed the term sheet. The due diligence process is currently going on. The transaction may be consummated by December or so.”

The identity of the new owner has not been revealed as due diligence is currently underway, nor has the amount paid.

Both companies said they would reinvest in other power projects. The run-of-river hydro project is to supply power to power-starved industrial belts in Himachal Pradesh.