Rel Power, Essar Power seek lenders nod to refinance loans

Debt-laden power companies have queued up to avail easier repayment terms under the 5:25 scheme. CNBC-TV18 has learnt that power companies like Reliance Power and Essar Power has sought lenders approval to refinance loans worth nearly Rs 25,000 crore

Sources have told CNBC-TV18 that Reliance Power is in talks with lenders to refinance loans worth Rs 15,000 crore for its Sasan UMPP. Reliance Power had recently refinanced two thermal power plants – Butibori plant in Maharashtra & Rosa plant in UP. A consortium of 16 banks led by SBI is expected to refinance loans for Sasan UMPP in next 3 to 4 months.

Essar Power is also in talks with its lenders to refinance loans worth nearly Rs 10,000 crores. Sources say, Essar Power is in talks to refinance loans worth Rs 6000 crores for its 1200 MW Mahan Plant in Madhya Pradesh. Out of the total Rs 10,000 crores of loans that Essar Power has sought easier payment tenure for, the remaining Rs 3300 crores of loans will be refinanced for its 1200 MW Salaya I plant in Gujarat.

The current outstanding debt of Essar Power Gujarat Limited (Salaya power plant) is Rs 3000 crores. Sources say that ICICI led consortium is likely to grant nod to refinance loans within 1 month. Essar Power is looking to structure the repayment profile of loans in line with the life of its 2 power plants under the RBI’s 5:25 refinancing scheme.