The Hindu Business Line : Gujarat Govt to exit power venture soon

THE exit of the Gujarat Government from the 655-MW Gujarat Powergen Energy Corporation (GPEC) at Paguthan will be complete by the middle of next week when the PowerGen, UK, pays some Rs 260 crore to Gujarat Power Corporation Ltd (GPCL).

Earlier, in July last, GPCL had been paid 10 per cent of the total consideration of Rs 288 crore for the deal by PowerGen.

This follows the consortium of lenders led by the Industrial Development Bank of India (IDBI) releasing the State-owned company this week from all liabilities as per a non-disposal undertaking it had signed at the inception of the project.

GPCL had signed an undertaking with the lenders not to transfer and assign its 12 per cent shareholding in GPEC without prior written permission from the IDBI-led cartel.

The lenders' syndicate comprising some 17 banking and financial institutions had taken loan positions in GPEC to the tune of Rs 1,950 crore including rupee loans, foreign currency loans and guarantees.

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