September 8, 2016
Private firms plea for extension of time for financial closure turned down
Chennai: The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has said that it is not interested in Cuddalore Powergens 1,320 MW project (the utility has a power purchase agreement (PPA) with the company) as the State is “power surplus”.
TANGEDCO made the submission to Tamil Nadu Electricity Regulatory Commission (TNERC) in reply to a petition filed by Cuddalore Powergen seeking an extension of the deadline for financial closure for the fifth time. Cuddalore Powergen is a project promoted by BGR Energy with a proposed investment of Rs. 6,200 crore. The company entered into an agreement with TANGEDCO in 2008 with a schedule to achieve financial closure in 12 months. However, the deadline got extended several times.
However, the firm was not in a position to comply with its obligation even seven years after signing the PPA, TNERC said in its order dated August 29.
TNERC said based on TANGEDCOs submission that it was not interested in the project, it did not see it fit to extend the time for the project to achieve financial closure.