Tata Power has given a proposal to the Gujarat government to sell 51 per cent stake in the Mundra power plant of 4 thousand MW for one rupee. With this proposal, Tata Power has said that with 49 percent of the share, they will continue to work in the plant. This proposal has been given to those states who buy electricity from the company.
Coastal Gujarat Power Limited (CGPL), which owns Tata Power unit and Mundra project, has suffered a loss of Rs 6457 crore. The company is facing difficulties in raising funds due to economic losses. Due to the loss, banks have also stopped providing loans. The company has also recommended enhancing the tariff for PPA.
Earlier this month, CGPL had written a letter to Gujarat Energy Development Corporation Limited and offered to hold only 49 percent stake in the project and run the project as a contractor. On this offer, the condition is that all buyers buy electricity at high rates. This letter has been sent to PM Modi’s Principal Secretary Nripendra Mishra and the Central Electricity Secretary.
CGPL CEO Krishna Kumar Sharma has said in the letter that the Mundra loss has increased to Rs 6,457 crore level. At the same time, its paid-stock capital was Rs 6,083 crore. He has also clarified in Letter that the outstanding loan on it is Rs. 10,159 crore. Banks and financial institutions have refused to lend due to not being project-oriented.