Gas-based power plants in A.P. seek debt recast

Faced with shortage of fuel for their power projects due to dwindling production of domestic gas, several gas-based power plant promoters in Andhra Pradesh have petitioned the banks and the government seeking restructuring of their loans or moratorium on repayments by at least two years.

All the gas-based plants in Andhra Pradesh are faced with fuel shortage, and are unable to run their plants to capacity. The KG basin too has seen continued decline in gas production. The promoters of these plants are of the view that if steps are not taken to augment gas supply, these power plants may slowly turn into non-performing assets.

This has also led to banks holding back financing of fresh power projects.

Government sources in the Power Ministry said the plants impacted by the fuel shortage include:

GVK-I (220MW), Spectrum (220MW), Lanco-II (355MW), BSES (220MW), Konaseema (460MW), GVK Gautami (464MW), GVK-II (220MW) and Vemagiri of the GMR Group (370MW).

It is learnt that GMR has taken loans of over Rs.2,600 crore for its Vemagiri project. Konaseema Power (460 MW) is understood to have approached IDBI Bank, Power Finance Corporation and Rural Electrification Corporation for a payment holiday for two years. It has loans worth Rs.1,400 crore.

The Central Electricity Authority data shows that about 13,000 MW of gas-based capacity is now under various stages of construction. Non-availability of gas to new power plants is a serious constraint. In Andhra Pradesh, the shortfall has meant that only about 1,170 MW out of the installed capacity of 2,770 MW is being used. Additionally, more than 2,400 MW of new capacity is available but not being used.

The Association of Power Producers (APP) has also petitioned the Prime Minister’s Office (PMO) seeking restructuring of the loans.

A letter from the Editor

Dear reader,

We have been keeping you up-to-date with information on the developments in India and the world that have a bearing on our health and wellbeing, our lives and livelihoods, during these difficult times. To enable wide dissemination of news that is in public interest, we have increased the number of articles that can be read free, and extended free trial periods. However, we have a request for those who can afford to subscribe: please do. As we fight disinformation and misinformation, and keep apace with the happenings, we need to commit greater resources to news gathering operations. We promise to deliver quality journalism that stays away from vested interest and political propaganda.

Support Quality Journalism
Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jun 4, 2020 4:35:20 AM |

Next Story