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GMR Chhattisgarh Energy Ltd, a subsidiary of GMR Infrastructure Ltd, has announced that the consortium of lenders of GCEL have adopted strategic debt restructuring plan as permitted by the RBI.
Following on this development, GCEL has allotted equity shares to all the lenders.
As per the SDR scheme, out of the total outstanding debt (including accrued interest) of ₹8,800 crore, debt to the extent of ₹2,992 crore has been converted into equity by which the consortium lenders will have 52.4 per cent shareholding and balance 47.6 per cent will be held by GMR.
Post the conversion, the balance project debt stands at ₹5,800 crore with ₹2,992 crore equity held by lenders and ₹2,721 crore equity held by GMR Group. The lower debt levels will result in improving the long term viability of the project, according to GMR.
GCEL is a 1,370-MW (2x685 MW) coal-based power plant located at Tilda, Raipur, in Chhattisgarh. The project was fully commissioned in March 2016 and has long term fuel security in the form of two captive coal blocks.
The plant is operating under short-term PPAs through exchange and bilateral routes.
The GMR Infra project joins some other similar projects of debt-laden infrastructure companies which have taken to the SDR route of the RBI. The scheme aims to prop up the project by acquiring equity and being part of the project core team to pare debt. This may also involve divestment of the stake at a later date by finding a suitor.
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