Lenders explore 1,320 MW East Coast project auction; sale to Karnataka an option
The successful completion of the project is not only crucial for the lenders but also PTC India and its subsidiary PTC Financial Services in which it has a 64.99 percent stake
Lenders to the Rs 10,500-crore under-construction 1,320 MW power project at Kakarapalli village in Andhra Pradesh’s Srikakulam district are exploring two options to save the project being set up by East Coast Energy. One option being considered is the auction of the plant in case a sale of the same to Karnataka doesn’t work out, an official with one of the lenders said.
Moneycontrol had on December 20 last year reported that Andhra Pradesh might come to the rescue of the 12 lenders to the project. But the state later withdrew given the complexities involved in takeover of a private project by a state government, the official said.
The project is based on imported coal and is about 30% complete, he said.
Power Finance Corp leads the list of 12 lenders, 11 of them public sector undertakings. The list of lenders to the project includes State Bank of India, Punjab National Bank, Bank of Baroda, Corporation Bank and Federal Bank.
The total debt of the project is Rs 8,700 crores. The total cost of Rs. 10,500 crore is for phase-I of the project, the phase-II too being of the same size in capacity and as of now only existing on paper.
East Coast is promoted by a consortium of companies.
At the end of last calendar year, Rs 2,969 crores had been disbursed in loans for the project. This comprised both fund-based and non-fund based lending. Similarly, Rs 836 crores were infused as equity. PFC had disbursed Rs 1,055 crore to the project, SBI Rs 594 crores, PNB 264 crores and BoB Rs 310 crores.
PTC India Financial Services held 8.09 percent stake in East Coast Energy while its parent PTC India owned 20 percent of Athena Energy Ventures, one of the promoter companies of East Coast with a 25.93 percent stake in the special purpose vehicle.
PTC India Financial had invested Rs 133 crore for its 8.09 percent stake in East Coast as on March 31, 2016. Similarly, PTC India had brought in Rs 85 crore as equity in the special purpose vehicle.
Athena is promoted by KV Vijayakumar and some high networth individuals from India and abroad. This includes promoters of Karvy group.Besides PTC India Financial and Athena Energy Ventures, Singapore-based Asian Genco Pte, Indus Clean Energy Fund, Navayuga Engineering Company and Abir Infrastructure are the other promoters of East Coast Energy.