Tata Power weighing raising stake in Resurgent Power Ventures

The Tata group has been evaluating the acquisition over the last 6-8 months
| Photo Credit:
REUTERS

Tata Power is weighing to increase its stake in Resurgent Power Ventures and buying out the other investors in the power joint venture firm, sources said, who indicated that an imminent deal is on the cards.

The Tata group has been evaluating the acquisition over the last 6-8 months and “on the basis of merit, a decision will be taken,” said a source with direct knowledge of the developments.

Tata Power holds 26 per cent stake in the Singapore-based power generation firm through its wholly owned unit Tata Power International. The remaining 74 per cent stake is held by ICICI Ventures, Kuwait Investment Authority and Oman Investment Authority.

The deal is expected to value the company at close to $2 billion, sources indicated, but the pricing is still under negotiation.

There was no comment from Tata Power till press time.

Resurgent Power, which was formed in 2016 to acquire stressed power assets in India, was a successful resolution applicant for South East UP Power Transmission Company, which it acquired under bankruptcy proceedings in September 2022.

Sources indicated that it is one of the best performing assets in the region. It was set up by the UP Power Transmission Company in 2009 to implement and operate a specified intra-state transmission system with a concession period of 35 years under public-private partnership model on Build-Own-Operate-Maintain and Transfer (BOOT) basis.

Tata Power now is looking at expanding its distribution business and during the March quarter earnings call the management had said the company would be bidding for two discoms in Uttar Pradesh. This will be synergistic to Resurgent’s existing asset in the state and will be a “win-win” deal if and when the stake acquisition goes through.

Resurgent Power Ventures reported a consolidated net profit of ₹613 crore in FY25 on revenue of ₹6,004 crore.

It has a 75 per cent stake in Prayag Power Generation and also owns NRSS XXXVI Transmission, which has transmission lines spread across Uttarakhand, Rajasthan and Haryana.

Published on July 3, 2025