Tata Power cancels Nagpur power pact

Tata Power on Friday said it has terminated an agreement with Nagpur-based Ideal Energy Projects to acquire a 270 megawatt coal-based power project in Maharashtra due to non-fulfilment of certain conditions.

In a regulatory filing, the company announc-ed the “termination of a share purchase agreement (SPA) with Ideal Energy Projects for acquisition of 100 per cent stake in a 270 MW coal based thermal power project in Maharashtra, extendable to 540 megawatt”.

The two companies had in December 2014 reached an agreement on the project.

“As per the terms of SPA, the acquisition was subject to fulfilment of certain conditions precedent. The company made all efforts to arrive at a workable solution to salvage a stressed asset along with key stakeholders,” it said.

“However, the stakeholders could not conclude, leading to non-fulfilment of the aforesaid condition pre-cedent,” it said.