SMH Update

RNS Number : 0189L

Infrastructure India plc

27 April 2020

 

27 April 2020

Infrastructure India plc

("IIP", the "Company and together with its subsidiaries the "Group")

Update re Shree Maheshwar Hydel Power Corporation Limited

Infrastructure India plc, an AIM quoted infrastructure fund investing directly into assets in India, announces that Shree Maheshwar Hydel Power Corporation Limited ("SMH"), an IIP portfolio  company, has received a termination order with regard to the historically entered Power Purchase Agreement ("PPA") and Resettlement & Rehabilitation Agreement ("R&R Agreement") from M.P. Power Management Company Limited, a company owned by the Government of Madya Pradesh, in respect of SMH's hydropower project (the "Project").

IIP has been notified of the termination orders received by SMH and is currently evaluating the implications of the termination orders on the Project. The PPA was signed in 1994 and amended in 1996 and the R&R Agreement was signed in 1997.

As announced in December 2019, SMH is currently under the management control of the promoter, following entry into an MOU with the Project lenders in 2019. There continues to be little visibility around the progress of completion financing and IIP maintains a cautious outlook. The Group's interest in SMH had an unaudited carried value of £6.1 million as at 30 September 2019, representing 2.4% of the Group's portfolio at that date.

The Board will provide further updates, as appropriate, in due course.

Enquiries:

Infrastructure India plc  Sonny Lulla	www.iiplc.com Via Novella
Cenkos Securities plc Nominated Adviser & Joint Broker Ben Jeynes / Katy Birkin	[phone]
Nplus1 Singer Advisory LLP Joint Broker James Maxwell - Corporate Finance James Waterlow - Investment Fund Sales	[phone]
Novella	[phone]
Financial PR
Tim Robertson / Fergus Young

 

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