(Alliance News) - Infrastructure India PLC said Monday its investee, Shree Maheshwar Hydel Power Corp, has been issued a termination order from the Madya Pradesh government in India for its hydropower project.
SMH received a termination order for its "historic" power purchase agreement and resettlement & rehabilitation agreement from MP Power Management Co, which is owned by the Madya Pradesh government.
The PPA was signed in 1994 and amended in 1996 and the R&R agreement was signed in 1997.
Towards the end of 2019, Shree Maheshwar Hydel was placed under the control of a different management company following a deal struck by Infrastructure India with the project lenders.
"There continues to be little visibility around the progress of completion financing and IIP maintains a cautious outlook," the Indian infrastructure fund said.
Infrastructure India's interest in SMH held a GBP6.1 million value at September 30, representing about 2.4% of the fund's portfolio.
By Paul McGowan; paulmcgowan@alliancenews.com
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Infra.india (IIP)