New Delhi: To revive Ratnagiri Gas and Power Pvt. Ltd, consultant Deloitte Touche Tohmatsu India Pvt. Ltd has presented a plan that includes options such as the Dabhol project be paid the minimum amount for sustenance from Maharashtra, people familiar with the development said.
The beneficiary from the beleaguered project—Maharashtra State Electricity Distribution Co. Ltd—may pay an amount equivalent to the current year’s debt servicing and meet the expenditure towards operations and maintenance of the 1,940 megawatt (MW) project, the consultant has suggested.
The other options suggested by Deloitte include conversion of debt into equity by lenders or fund infusion by the promoters. Cash-strapped Ratnagiri has a debt of around Rs.8,500 crore, with an outstanding debt service obligation of Rs.837.94 crore for the current financial year.
State-run NTPC Ltd and GAIL (India) Ltd own 32.86% each in the utility, the Maharashtra government has a 17.41% stake, and the rest is owned by banks and financial institutions such as IDBI Bank Ltd, State Bank of India,ICICI Bank Ltd and Canara Bank. NTPC had warned its parent, the power ministry, that its investment in Ratnagiri will likely have to be written-off—a significant loss of money and face.