New Delhi: Public sector companies NTPC Ltd and GAIL India Ltd may have to pump more money into the Dabhol power plant after a panel monitoring the progress of the project decided to limit lenders’ commitment to Rs455 crore.
A committee of secretaries (CoS) in December decided lenders will bear a total of Rs921 crore out of the Rs1,494 crore escalation in completion cost of the project and the adjacent liquefied natural gas facility. People familiar with the matter said the CoS did not entertain the demand of Ratnagiri Gas and Power Pvt. Ltd (RGPPL), the joint venture of NTPC and GAIL that owns the power plant, to ask lenders to bear additional Rs573 crore costs. The original estimate was Rs870 crore when RGPPL took over the plant in 2005. In September 2007, the company put the cost at Rs1,960 crore, but raised it to Rs2,364 crore in December. Lenders, including IDBI Bank and ICICI Bank, said RGPPL should have had a firm view of the cost and should not be allowed to perennially increase it