The Punjab federal government has actually finished the payment of Rs 1,426 crore to banks led by IDBI to finish the takeover of the financial obligation packed 540 MW GVK Power‘s Goindwal Sahib thermal power plant
The cash was dispersed to banks late on Tuesday night and relates to a healing of 43% of their primary charges consisting of some travel through payments which were stuck due to lawsuits in between the plant owners and the federal government.
“This is one chunky healing after lots of weeks and will straight enhance bank bottom lines in the 4th quarter. The federal government has actually likewise paid some receivables which were due that has actually improved healing,” stated an individual familiar with the deal.
IDBI Bank is the biggest recipient from this account getting Rs 306 crore, followed by Punjab National Bank (PNB) which got Rs 165 crore. Union Bank of India and Axis Bank are the other leading lending institutions to the account.
The business was among lots of coal plants which were stated as NPA after the federal government cancelled coal allotments because of a Supreme Court order quashing 214 blocks in September 2014.
The task was developed back in 1994 and had a memorandum of comprehending with the Punjab State Power Corp (PSPC) to provide power for 25 years however the task stopped working to remove due to issues relating to coal schedule.
Overall confessed claims totaled up to Rs 6,584 crore consisting of Rs 650 crore in receivables from the PSPC. Lenders have actually gotten a few of these receivables with the settlement too.
The state federal government actioned in as the sole bidder in July 2023 after earlier bidders consisting of big power manufacturers like Adani Power, Jindal Power and Vedanta backed out over issues on lawsuits in between the personal power manufacturer and state federal government over non-payment of fees, ET had actually reported in its July 6, 2023 edition.
“The federal government as a bidder was a win-win for banks since it implied that a few of the pending charges might be gotten efficiently. On a primary basis consisting of the receivables recuperated banks have actually roughly made a healing of about 60% which is an excellent rate,” stated an individual acquainted with the offer.
Previously in January, Punjab chief minister Bhagwant Mann had actually revealed that the federal government had actually finished procedures in acquiring the plant.
The 540-MW thermal power plant is an independent power plant and is topped 1,100 acres of land in Goindwal Sahib in Tarn Taran.
Mann stated the plant will now be called Sri Guru Amardas Thermal Power Plant after the 3rd Sikh Guru.
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