Focussing on getting stuck projects operationalised: Essar Power

Debt-laden private utility Essar Power today said its focus is on getting stuck projects operationalised and profitable.

The company is burdened with Rs 20,369 crore debt and is evaluating possibilities of reducing it.

"Our focus and priority is to get our plants operational and profitable. We have no plans now to monetize any assets for now," a company spokesperson said.

Earlier, a company's senior executive had said that to reduce debt Essar Power was mulling monetization of some units plants, including some of its gas-based plants in the country.

Esaar Power has said it is planning to fully operationalise its 1,200 mw Mahan project in Madhya Pradesh as well as its two captive gas-based plants in Gujarat.

It has two captive gas-based plants in Hariza in Gujarat with a capacity of 500 mw and 515 mw each, which are currently shut for want of fuel.

The 500-mw Bhander plant in Hazira was commissioned in 2006 and commenced full commercial operations in 2008, but due to high fuel price, the firm shut the plant three years ago.

The 515-mw Essar Power Hazira plant had signed power purchase agreements (PPAs) with Essar Steel and Gujarat Urja Vikas Nigam and was commissioned in October 1997.

"Both these plants are ready and can go operational once we have fuel supply. We are hopeful of commencing operations on the Bhander project this quarter," the spokesperson added.

The company is also in the process of tying up for coal linkages for its 1,200 mw coal-based Tori project in Jharkhand in the next fiscal.

Meanwhile, the firm has sought easier terms of repayment for some of its power plants so it matches the life-cycle of the project.

Banks have given a go-ahead to that under 5:25 refinancing scheme. It extends loan repayment for infrastructure companies by up to 25 years, which can be refinanced every five years.

Essar Power has already restructured Rs 10,000-crore under the scheme and hopes to complete up to Rs 18,000 crore this calendar year.