Tata Power has reportedly sought ‘certain waivers’ from lenders to ensure further disbursements of loans to the 4,000 MW Mundra plant. Weighed down by higher imported coal prices and lower tariff realization, the Mundra project, which is operated by Tata Power’s subsidiary, Gujarat Power (CGPL) is struggling with significant financial burden including impairment provisioning against its assets.
Meanwhile, according to Tata Power's annual report for the 2012-13 fiscal, consequent to the impairment loss with respect to Mundra UMPP, certain covenants governing the loans borrowed for construction of the project could not be met at the end of March 31, 2013. Subsequently, CGPL received waiver from compliance of the covenance up to 30 June, 2013.
Further, the subsidiary has now sought revision in certain terms of financing agreements and expects to execute such revision. Accordingly, loans aggregating to Rs 11,512.55 crore are considered to be long-term borrowings (including current maturities of long-term borrowings of Rs 686.32 crore).
