News Column

Srei Infra To Buy Abhijeet Group's Jharkhand Project

June 1, 2014

Srei Infrastructure Finance Limited is planning to buyout 1,080MW Thermal Power Project at Chandwa, Latehar Distt, Jharkhand owned by the Abhijeet Group. The sale is being madea as lenders to the Abhijeet Group are seeking to recover or restructure their loans.

The project which is valued at R9000 Cr is likely to be taken over by Srei's group company India Power Corp Limited.

Lenders to the group include @Rural_ElectrificatiC Limited(REC) and @StateBankOfIndia (SBI). The Jharkhand project has four units of 270MW each, divided into two phases; phase I to be commissioned by 2014 and Phase II in August 2015. REC is the lead lender for two units, SBI is the lead lender for the remaining two.

SBI has lent around R2200 Cr to the group, but has R3200 Cr of collateral pledged with it. REC has sanctioned around R2000 Cr for the project and has released R650 Cr.

Slowing growth, high borrowing costs and delays in securing regulatory approvals have hit many infrastructure projects in India including power plants. As far as the Jharkhand project is concerned it is stuck on account of non-payment of dues owed to government-run power equipment maker @Bharat_Heavy_E Limited.

Abhijeet group which has interests spread across power, roads, mining, epc, ferroalloys, steel and cement is one among alleged beneficiaries of the previous government's irregular allotment of coal mines.

India Power Corporation Ltd., (IPCL) was incorporated in 2003 and currently has 95 MW of wind assets in operation in the States of Rajasthan, Gujarat and Karnataka and also has developed solar power plant with West Bengal Green Energy Development Corporation Ltd., in Asansol, West Bengal.

The company is setting up a 450 MW Thermal Power Plant in Haldia, West Bengal and also has conceived thermal power projects in Bihar, Gujarat and Madhya Pradesh. With the development of the power plants, IPCL intends to scale its power generation portfolio up to 10,000 MW in the years to come.

The Company also owns and operates a distribution license under the brand of DPSC Ltd.

Other recent deals in this space; GVK Power & Infrastructure was planning to sell its under construction 540 MW Goindwal Sahib power plant in Punjab to NTPC; Hyderabad based Nava Bharat Ventures was planning to raise funds for its nine month, coal-fired power project in Zambia by June 2014

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: DealCurry (India)

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