September 12, 2016
The Hindu Business Line
After repeated extensions of deadline to achieve financial closure for its 1,320-MW thermal power project, Cuddalore PowerGen Corporation failed to get further reprieve from the Tamil Nadu Electricity Regulatory Commission.
The Commission declined to grant it further time and rejected the companys petition which sought extension up to June 2016. Cuddalore PowerGen is a project by the promoters of BGR Energy, a listed company.
In an order dated August 30, 2016, the power regulator noted that the company is not in a position to achieve financial closer even after repeated extensions totalling over seven years.
TN not keen
Also, the Tamil Nadu Generation and Distribution Corporation, the public sector utility with which the power company had entered into a power purchase agreement in 2008 for the 2X660 MW thermal power project, was no longer keen on the project as it was surplus in power and the project had been delayed for long.
Therefore, the TNERC declined to grant Cuddalore PowerGen further extension for the project envisaged with an investment of over ?6,000 crore. Company officials were available to comment on the TNERCs order.