Dab­hol power plant man­ages to dodge NPA tag once again

The Financial Express - - MONEY & MARKETS -

Mum­bai, Dec 30: The Dab­hol power plant has man­aged to make some pay­ments to its lenders, to avoid be­ing clas­si­fied as a non-per­form­ing as­set (NPA). The plant was re­quired to make pay­ments for dues which have been pend­ing since Septem­ber 30.

Rat­na­giri Gas and Power (RGPPL), which owns the as­sets in Dab­hol, had paid pre­vi­ous dues only ear­lier this month. SBI chair­man Arundhati Bhattacharya had dashed off a let­ter to the Union power sec­re­tary rais­ing con­cerns over the com­pany's abil­ity to ser­vice its loans given the acute short­age of sup­ply of gas to the plant. “This would re­sult in slip­page of as­set qual­ity, which would be a set back for lenders de­spite their sac­ri­fice through waivers and con­ces­sions in re­viv­ing the project,” Bhattacharya had said.

The let­ter had notes that the ca­pac­ity util­i­sa­tion of the plant is low and that RGPPL has “no funds to meet re­pay­ment com­mit­ments and is on the verge of de­fault due to stalled op­er­a­tions be­cause of non-avail­abil­ity of fuel”.

This is not the first time RGPPL has paid in­stall­ments at the last minute, bankers con­firmed. SBI has an ex­po­sure of R1,752 crore to the Dab­hol plant. IDBI Bank has an ex­po­sure of nearly R2,000 crore and Ca­nara Bank is known to have an ex­po­sure of close to R400 crore. fe Bureau

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.