Dabhol power plant manages to dodge NPA tag once again
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