Cuddalore PowerGen Corporation of the BGR Group has received a two-year deadline extension to achieve financial closure.
The Tamil Nadu Electricity Regulatory Commission has granted the final extension up to April 30, 2014, for the company to achieve financial closure for the Rs 6,200-crore project to set up a 1,320-MW (2x660 MW) power project near Cuddalore.
The Regulatory Commission passed the order extending the deadline last week on a petition filed by the company.
The company had sought the extension of deadline and to alter the power purchase agreement it has tied up with the Tamil Nadu Generation and Distribution Corporation in line with the new deadline.
The company entered into agreement with Tangedco in April 2008 with a provision to achieve financial closure within 12 months. The Commission noted that the deadline has been extended three times since then.
The Commission said in its order that it gives the additional time provided the completion cost does not exceed the cost agreed in the power purchase agreement and the company should not ask for further extension.
Cuddalore Power had asked for more time as a pipeline belonging to Chemplast Sanmar, another company, is running through the site.
The pipeline was to have been shifted by December 2011 but there has been a delay.
Also, land acquisition is in progress.
If the company achieves financial closure by 2014, the first of the 660-MW unit will go on stream in November 2017 and the second by 2018.