Tata seeks waivers from Mundra UMPP lenders

Hit by higher price of imported coal and lower tariff realisation, Tata Power has sought ‘certain waivers’ from lenders to ensure further disbursements of loans to the 4,000 MW Mundra plant, the country’s first operational ultra mega power project (UMPP). The Mundra project is grappling with significant financial burden including impairment provisioning against its assets. Mundra project, fired by imported coal from Indonesia, is being run by Coastal Gujarat Power (CGPL), a wholly-owned subsidiary of Tata Power. The company has not yet sought restructuring of loans given to the Mundra UMPP but certain waivers from lenders to enable further disbursements of loans, officials of the company said. The amounts for which the waivers have been sought are ‘related to certain terms in the loan agreement.’ The original cost estimate for Mundra project was Rs 17,000 crore. It has funding from IFC, IIFCL, ADB, Korea Eximbank, BNP, SBI and nine other lenders.