Dabhol’s lenders have raised alarm bells over the Maharashtra state government discoms’ failure to pay Rs 1000 crore to Dabhol power plant.
CNBC- TV18 learns from sources that the Maharashtra Distribution Company is disputing this outstanding amount saying that they have made all the payments that were due for the plant, and they are also likely to issue a clarification on the same to Dabhol’s lenders soon.
Also read: Govt obliged to pay discoms' subsidy upfront: Ex-CERC chief
The problems for the Dabhol project started last year when gas flow stopped completely under the government's policy decision forced by a sharp fall in output from Reliance Industries' KG-D6 field. The government was forced to divert the available gas from RIL's field from power plants to fertilizer plants and since Dabhol’s power project primarily depended on gas from RIL’s KG-D6, the plant had come to a standstill.
Meanwhile, the Maharashtra Distribution co had also signed PPA with Dabhol to procure power at Rs 3.81/unit based on fuel from KGD6 gas, which did not happen since there was no gas from KG-D6.
So, Dabhol then floated a proposal to import gas and sell power at Rs 8/unit - a much higher rate which was rejected by Maharashtra Distribution Co.
Now, a lack of clarity around this has created a situation where the Dabhol lenders which have an exposure of more than Rs 8500 cr to this power project are saying that the Maharastra State Distribution Co owes a Rs 497 cr as per PPA contract and another Rs 506 cr towards recovery of fixed charges.
This case is expected to get dragged into litigation.
However, if a resolution towards Dabhol outstanding debt is not met soon then the company could become an NPA in the books of accounts of banks.
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