Companies

GMR Chhattisgarh Energy: Lenders to divest stake in project as per SDR

V Rishi Kumar Hyderabad | Updated on January 09, 2018 Published on December 31, 2017

A consortium of lenders of the GMR Infrastructure-promoted GMR Chattisgarh Energy Ltd may divest their stake inducting a suitor as per the Strategic Debt Restructure (SDR) process under the RBI guidelines.

GMR Chhattisgarh Energy, which completed its 1370 MW thermal power project in March 2016, had taken to the strategic debt restructure process.

As per the guidelines for SDR, lenders need to divest their shares in the company to a new promoter within stipulated timeline of 18 months from the reference date of SDR.

Accordingly, lenders headed by Axis Bank are likely to divest stake in the company.

In February 2017, the GMR Infra had informed the BSE through a regulatory statement that the consortium of lenders have adopted SDR and as per the scheme, out of the total outstanding debt, including accrued interest, of ₹8,800 crore, debt of ₹2,992 crore was converted into equity. The consortium of lenders due to equity conversion have 52.4 per cent of the shareholding and the balance 47.6 per cent is with GMR.

After the conversion, the project balance cost works out to ₹5,800 crore with ₹2,992 crore equity held by the lenders and ₹2,721 crore equity with GMR, as of February.

The project is a 1370-MW (2x685 MW) coal-fired power plant located at Tilda in Raipur district of Chhattisgarh. It was commissioned in March 2016 and has long term fuel supply through captive coal blocks in Odisha and Jharkhand.

The lower debt levels will result in improving the long term viability of the project, according to GMR. The plant is operating under short-term PPAs through exchange and bilateral routes.

This GMR Infra-promoted power project is among many similar projects of debt-laden infrastructure companies which have taken to the SDR route of the RBI.

Published on December 31, 2017
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