GET Stock QuotesNews18 APP
News18 English

ASSOCIATE SPONSORs

Powered by cricketnext logo
»
1-min read

Stressed Power Projects: Finance Minister Holds Review Meeting With Lenders

The high-level meeting was also attended by Principal Secretary to the Prime Minister Nripendra Misra, senior officials of power ministry, SBI chairman Rajnish Kumar, among others, sources said.

PTI

Updated:January 13, 2018, 8:32 PM IST
facebookTwittergoogleskypewhatsapp
Stressed Power Projects: Finance Minister Holds Review Meeting With Lenders
File photo of Finance Minister Arun Jaitley. (PTI)
New Delhi: Finance Minister Arun Jaitley on Saturday held a review meeting with lenders and senior officials on the financial stress faced by some of the power projects, including that of Tata Power and Adani Group in Gujarat.

The high-level meeting was also attended by Principal Secretary to the Prime Minister Nripendra Misra, senior officials of power ministry, SBI chairman Rajnish Kumar, among others, sources said.

It is to be noted that Tata Power last year offered to sell 51 percent stake in its 4,000 MW Mundra power project for Rs 1 to states like Gujarat, which gets electricity from it, to tide over the financial crisis facing this business.

Besides, there were allegations that Adani Group charging exorbitant electricity tariff in Gujarat.

However, the company refuted the charges saying it sold power to the state at a "very attractive" price of Rs 2.65 per unit over the last four years.

Coastal Gujarat Power Ltd (CGPL), the Tata Power unit which operates the Mundra project, wrote to Gujarat Urja Vikas Nigam Ltd offering to retain only 49 percent stake and operate the project as a contractor provided the procurers buy all the power at higher tariffs.

In the letter, copies of which were marked to the principal secretary to the prime minister and Union power secretary, CGPL CEO Krishna Kumar Sharma said Mundra has accumulated losses of Rs 6,457 crore against a paid up equity of Rs 6,083 crore.

It has outstanding loan of Rs 10,159 crore and lenders have stopped further disbursal due to non-viability of the project, he wrote.

Tata had in February 2006 won a bid for the 4,000 MW Mundra project in Gujarat, quoting a price of Rs 2.26 for every unit of electricity generated. It had intended to fire the plan with coal imported from mines owned by the Tata Group in Indonesia.
| Edited by: Ashish Yechury
Read full article
Next Story
facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
HDFC 1,896.80 +38.45 +2.07
SBI 303.25 -3.85 -1.25
Yes Bank 341.20 -1.20 -0.35
ICICI Bank 346.15 +2.90 +0.84
HDFC Bank 1,934.30 +43.80 +2.32
Company Price Change %Gain
Indiabulls Hsg 1,243.40 +35.05 +2.90
HDFC 1,897.00 +37.05 +1.99
SBI 302.75 -3.60 -1.18
IDFC 59.00 -2.65 -4.30
Yes Bank 340.25 -2.25 -0.66
Top Gainers
Company Price Change %Gain
Indiabulls Hsg 1,243.70 +34.35 +2.84
ITC 273.40 +7.35 +2.76
UPL 800.50 +19.75 +2.53
HDFC Bank 1,934.30 +43.80 +2.32
HDFC 1,896.80 +38.45 +2.07
Company Price Change %Gain
ITC 272.85 +6.95 +2.61
HDFC Bank 1,931.80 +40.70 +2.15
HDFC 1,897.00 +37.05 +1.99
M&M 758.70 +13.65 +1.83
Kotak Mahindra 1,045.40 +18.20 +1.77
Top Losers
Company Price Change %Gain
Bharti Infratel 343.80 -22.30 -6.09
Adani Ports 416.25 -17.15 -3.96
Hindalco 253.90 -8.85 -3.37
UltraTechCement 4,408.65 -135.60 -2.98
Tata Steel 751.75 -22.25 -2.87
Company Price Change %Gain
Adani Ports 414.35 -18.70 -4.32
Tata Steel 751.85 -22.40 -2.89
Coal India 283.10 -8.20 -2.81
BHEL 97.25 -2.60 -2.60
Sun Pharma 576.25 -7.10 -1.22

Live TV