PFS gets Rs 145 cr from resolution of stressed account Prayagraj Power Generation Company
The long-term infrastructure financing company said it has recovered Rs 145 crore from Prayagraj Power Generation Company Ltd (PPGCL).
PPGCL owns and operates a 1,980 MW (3X660 MW) coal-based thermal power project in Uttar Pradesh and had become a non-performing asset due to financial and operational stresses.
PFS is also expected to receive Rs 7 crore as per agreement, PFS said in a statement on Sunday.
This development shall augment the liquidity position of PFS and also result in a reduction of its stressed assets portfolio.
"Going forward, it shall also have a positive bearing on the yields and spread of PFS as this account was reflected in the assets but not yielding any income," it said.
The resolution was achieved under the open bidding process initiated by the consortium lenders led by State Bank of India, wherein a one-time settlement (OTS) offer submitted by Resurgent Power Ventures Pte Limited emerged as the highest bidder.
PFS said this resolution is one of the many stressed assets that the company has resolved successfully in the recent past.
The non-banking financial company for the power sector has already resolved stressed assets exposure of almost Rs 1,000 crore and is in the process of resolving balance stressed assets in the near future which is expected to improve its financials going forward.
The total PFS exposure in the instant stressed account was Rs 328.70 crore. PFS had already provided for the balance amount left after the resolution amount, it added. KPM HRS