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GVK Goindwal Sahib project in Punjab is likely to see a lender swap with Deutsche Bank all set to replace existing senior lenders of the coal fired thermal project.
The project, which had to go tough times after its commissioning due to lack of coal supplies, has begun to generate power again after it secured fuel allocation under the Power Ministry’s Shakthi Scheme. The GVK project, which has secured a Tokisud coal mine in Jharkhand to be used as captive mine, had cancelled this after the Supreme Court decided to cancel all coal mine contracts following the mega coal scam.
This left the project stranded for several quarters before it secured coal allocation of 1.7 million tonnes from CCL and 6300 MT from SCEL enabling the plant to generate 804 million units during 2018-19, which is highest since commissioning. The project, which was on the brink of getting into insolvency under the NCLT, has begun to generate power. GVK has struck a deal with various lenders and pave way for debt transfer to Deutsche Bank, Issac George, CFO of GVK power said.
The power project has about Rs 3510 crore debt to be paid over next 17 years. However, the loan swap would auger well for banks as they get upfront payment. Speaking on the sidelines of the GVK’s 25th AGM, GVK Reddy, Chairman said “Gas based power projects continue to be non operative due to lack of supply of natural gas and the coal plant is unable to generate the expected revenues due to non availability of adequate coal. Both these factors have adversely affected cash flows of the projects.”
Referring to the Alaknanda hydel project, GVK Reddy said that the project operated all four units at their full capacities during the monsoon and at a plant load factor of 49.7 per cent. During 2018-19, GVK registered total income of Rs 4098 crore as against Rs 3863 crore, up 6 per cent. The airport assets contributed Rs 3699 crore and transportation Rs 398.18 crore and the company posted a loss of Rs 304.42 crore.
Referring to the Chhatrapathi Shivaji International Airport, GVK Reddy said it is operating at optimum capacity and is catering to 1007 movements on a single day. Efforts are on to accommodate more passengers at the airport.
Transportation
While the transportation segment contributed Rs 398.18 crore, down 8.52 per cent over previous year’s Rs 435.27 crore, GVK has served notice to NHAI with regards to Deoli Kota Expressway Private Limited for material breach of contract and defaults.
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