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Powerless Abhijeet Group’s overtures to new power centre |
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NAGPUR: When Mihan is finally close to getting cheap power, Abhijeet Group, the company which had set up a 240MW power plant dedicated for this special economic zone (SEZ), has once again approached the state government, hoping to strike a truce with the new regime.
In July, debt-ridden Abhijeet Group, which had partnered with Maharashtra Airport Development Company (MADC) to set up the power plant, had slapped a termination notice on the latter. It had demanded Rs 1,837 crore as damages but also indicated readiness for a midway deal. However, there was no response from the previous government.
Now, after the change of guard in the state, Abhijeet Group is hoping that the BJP regime may consider its demands. In that case, the company will be able to run its plant and tide over the loan crisis too.
It is sitting on a bad loan of Rs 1,100 crore for the Mihan venture. A source in the company said that the loan is on the verge of being classified as a non-performing asset (NPA).
Abhijeet Group wanted to pull out of Mihan on the grounds that it was unviable to run the plant exclusively for the SEZ, which does not have demand of more than 5MW. The plant's total capacity is 240MW.
The company needs a guarantee for the rest of the power it will produce. Abhijeet Group insists that state-owned MSEDCL should buy the rest of the power. For this, it will have to enter into a long-term power purchase agreement (PPA).
A source in MADC dealing with the matter said the agency will have to again approach MERC with final details. Moreover, buying power through exchanges cannot be a long-term solution. If the dispute with Abhijeet Group is settled, it is well and good, or else another generator will have to found. Since the power to be supplied to Mihan will have to supplied through Abhijeet Group's network, it has given consent for now.
MADC vice-chairman-cum-managing director Tanaji Satre, who confirmed that MERC will have to be approached again, added that in any case the tariff will be almost same. Satre added that MADC will have to work on a long-term solution, since the current deal was a short-term measure.
However, Ajay Mehta, managing director of MSEDCL refused to comment on the issue.
Source : timesofindia.indiatimes.com
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