GMR Energy seeks to get Rs. 2,600-cr loan rescheduled
Power-to-airports major GMR Group has approached IDBI Bank, the lead bank to GMR Rajamundry Energy, to reschedule its Rs. 2,600-crore loan.business Updated: Nov 18, 2012 21:38 IST
Power-to-airports major GMR Group has approached IDBI Bank, the lead bank to GMR Rajamundry Energy, to reschedule its Rs. 2,600-crore loan.
The group has also asked the lenders to allow the company to delay the commissioning of the project to April, 2014.
"We are hopeful that it will be done," said Bhaskar Rao, GMR Energy's chief financial officer.
He said this is not a debt restructuring, but rescheduling of a standard loan.
The highly-indebted GMR Group has debt of Rs. 35,000 crore, or 3.2 times its balance sheet size, at the end of the second quarter. The Rs. 3,250-crore, 768-mw coal-fired Rajamundry project has a loan component of Rs. 2,600 crore taken from 11 banks, Rao added.
Despite many attempts, IDBI Bank executive director Ravindra Nath, who looks after the GMR account, could not be reached for comments.
Rao said they have asked the lenders to allow the company to postpone the commissioning of the project to April 2014 as gas supply issues are yet to be resolved and the civil work not over so far.
The project was scheduled to be commissioned this April. It had incurred a cost-overrun of Rs. 810 crore so far, according to the company.
GMR Energy currently runs 880 mw of installed capacity, and 3,778 mw are under development, including two hydel projects in Nepal.