FIs launch major review of 19 private power projects
Financial institutions, led by the Industrial Development Bank of India (IDBI), in view of the dismal performance of the private sector power producers, have launched a review of their financial commitment to 19 power projects with a total investment of Rs 43,096 crore. These projects have a total generating capacity of 8,769 mw. Though a majority of developers of these projects were initiated 1992-93 onwards, they have yet not been able to achieve financial closure thanks to political, economic and social factors.
The list of projects included Videocon Power Ltd, Tamil Nadu (coal-based -1,050 mw -Rs 5,976 crore -ICICI), Bina Power Supply Co, Madhya Pradesh (coal -578 mw -Rs 2,630 crore -ICICI), Rosa Power Supply Co, Uttar Pradesh (coal -567 mw -Rs 2,906 crore -IDBI), GVK Goindwal Sahib, Punjab (coal -562 mw- Rs 2,902 crore -IDBI), BPL Power, Andhra Pradesh (coal -520 mw -Rs 2,820 crore- ICICI), Reliance Power Ltd, Gujarat (Petcoke -500 mw - Rs 2,724 crore -IDBI), Jayamkondam Power Pvt Ltd, Tamil Nadu (Lignite -500 mw -Rs 2,782 crore -IDBI), Balagarh Power, West Bengal (coal -500 mw -Rs 2,516 crore -ICICI), Konaseema EPS Oakwell Power Ltd, Andhra Pradesh (gas -467 mw -Rs 1,377 crore -IDBI), Gautami Power Ltd, Andhra Pradesh (gas - 455 mw -Rs 1,325 crore -IDBI), Reliance Patalganga, Baligarh Hydro Power, J&K (hydel - 450 mw -Rs 3,810 crore -PFC), Maharashtra (naphtha -447 mw -Rs 1,776 crore -IDBI), Maheshwar Hydel Power, Madhya Pradesh (hydel -400 mw -Rs 2,254 crore -IFCI), Jaiprakash Power Ventures, Uttar Pradesh (hydel -400 mw -Rs 1,800 crore -IDBI), Vemagiri Power, Andhra Pradesh (gas -370 mw -Rs 1,298 crore -IDBI), Ispat Energy Ltd, Maharashtra (naphtha -367 mw -Rs 1,470 crore -IFCI), Gujarat Mineral Development Corporation, Gujarat (lignite -250 mw -Rs 1,395 crore -IDBI), GVK Jegurupadu phase-II, Andhra Pradesh 9gas -230 mw -Rs 760 crore -IDBI) and Gujarat State Energy Generation Limited, Gujarat (gas -156 mw -Rs 575 crore -IDBI).
It must be mentioned here that IDBI executive director RS Agarwal had recently announced at a seminar that such a review would be launched and thereafter FIs could even cancel assistance in the coming months. Mr Agarwal had also made it clear that IDBI, which has a total exposure of Rs 2,121 crore in the distressed Dabhol project, had already taken a decision not to provide finance to new independent power projects.
According to Mr Agarwal, FIs have funded a whopping Rs 42,000 crore to 58 IPPs since the opening up of the power sector in 1992. However, he had stated that only 16 projects with a generating capacity of 5,000 mw had been able to commence generation. He had also declared that FIs had already stopped the assitance to 14 slow pregressing projects.
Mr Agarwal was quite critical about failure of Gujarat, Andhra Pradesh and Tamil Nadu governments to provide escrow cover despite repeated meetings and correspondence.
