http://economictimes.indiatimes.com/industry/energy/power/adani-power-urges-gujarat-government-to-bail-out-mundra-power-plant/articleshow/59008598.cms

Adani power urges Gujarat government to bail out Mundra power plant

BY RACHITA PRASAD, ET BUREAU | UPDATED: JUN 06, 2017, 01.41 AM IST


MUMBAI: Billionaire Gautam Adani led-Adani Power has approached
state-run Gujarat Urja Vikas Nigam (GUVNL) to bail out its Mundra
power plant, which stares at financial unviability after the Supreme
Court in April quashed the company's plea for tariffs that would have
compensated escalations in Indonesian coal costs.

Adani PowerBSE 1.68 % is hiving off its 4,600 mw-thermal power plant
into a separate subsidiary, and is exploring all options for financial
revival, including a potential sale of substantial stake in the new
subsidiary. According to two industry executives, Adani is believed to
have offered a substantial stake in the Mundra power plant to GUVNL,
which is in a power purchase pact to source 2,000 mw from the unit.

"Consequent to the outcome of the Supreme Court judgement, we have
engaged with the stakeholders, including GUVNL, for possible remedial
measures for long-term sustainability of the Mundra Plant and various
options are being explored presently," an Adani Power spokesperson
told ET.

In response to a question on stake sale, the company said: "At this
juncture, it would be premature to comment on the query raised by you
on the likely sale of stake in the plant." ET made several attempts to
reach out to the chairman of GUVNL, but could not get his response.

Snipped



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