Essar Power focuses on getting stuck projects operationalised

The Dollar Business Bureau

Essar Power on Sunday said it is focusing on getting its stuck projects operationalised and profitable, with no clear cut plan regarding monetizing its assets. The private utility has a debt of Rs.20,369 crore and is evaluating options to reduce it.

Earlier, Essar Power had said it was considering to monetise some of its plants, including its gas-based units in the country.  

The company is planning to operationalise its 1,200 MW Mahan project in Madhya Pradesh and its two gas-based units in Gujarat. 

Essar Power has two captive gas-based units in Gujarat with total capacity of 500 MW and 515 MW each. The two plants are currently inoperative due to shortage of fuel. 

The 500-MW plant in Hazira in Gujarat was commissioned in 2006 and was fully-operational in 2008. But the plant has been shut for over three years due to high fuel prices. The 515-MW Power plant, also in Hazira, Gujarat, was commissioned in 1997. These plants are ready to go operational with the supply of fuel.

Meanwhile, Essar Power is in the process of stitching coal linkages for the 1,200 MW coal-based Tori project in Jharkhand during the next fiscal.

The company has sought easier terms of repayment from the banks for some of its power-based plants. Banks have okayed the repayment plan under the 5:25 refinancing scheme, in which they extend loan repayment for infrastructure firms by up to 25 years and which can be refinanced every five years. 

Essar Power has restructured Rs.10,000 crore under this scheme and hopes to complete another 18,000 crore in this calendar year.