GMR Rajahmundry Energy Limited (GREL), a subsidiary of GMR
Infrastructure Limited (GIL) has announced that considering the absence of long term Fuel
Supply Agreement (FSA) and long term Power Purchase Agreements (PPA), the consortium of
lenders of GREL have adopted the Strategic Debt Restructuring Plan (SDR), as provided under
the scheme permitted by the RBI. Accordingly, the company in its meeting held today has
issued equity shares proportionately to all the lenders.
As per the SDR scheme, out of the total outstanding debt (including overdue interest) of
Rs 3,780 cr, debt to the extent of Rs 1,414 cr has got converted into equity by which the
consortium lenders would have 55% shareholding and balance 45% would be held by GMR.
Post conversion, balance debt of around Rs 2,366 cr would be having repayment period of 20.5
years comprising of moratorium of 1.75 years and interest rate of 10.75%. After SDR, the total
equity in the project would be Rs 2,571 cr resulting in the debt-to-equity ratio of 0.9x.
The lower debt levels coupled with reduction in interest cost would result in improving the long
term viability of the project.
About GMR Infrastructure Limited
GMR Group is a leading global infrastructure conglomerate with interests in Airport, Energy,
Transportation and Urban Infrastructure. The group has fifteen power generation projects, nine
operating road assets and a double rail track line of eastern dedicated freight corridor under
GMR Group developed and operates India’s busiest and currently World’s No. 1 Indira Gandhi
International Airport in New Delhi and greenfield Rajiv Gandhi International Airport at
Hyderabad. GMR Infrastructure in partnership with Megawide Construction Corporation is
developing Mactan Cebu International Airport (MCIA) in Philippines. The Group is also
developing two Special Investment Regions at Krishnagiri and Kakinada and India’s largest
Smart Airport City near Hyderabad International Airport.
About GMR Rajahmundhry Energy Limited
GREL is a 768 MW (2x384 MW) natural gas based Power Plant in District Rajahmundry,
Andhra Pradesh (“Project”). Though the project was completed in 2012, the commissioning of
the project was delayed due to unavailability of gas supply on account of unprecedented fall in
gas production in KG-D6 basin which led to cost over-runs. The project was fully commissioned
in the month of October 2015.
Under “e-RLNG bid scheme of Government of India for stranded gas power plants” GREL has
gas supply in both phase-II & phase-III of bidding. In phase-III of the scheme, the plant will
receive gas from GAIL to operate upto 30% PLF and supply the entire power produced to
Andhra Pradesh Discoms as per Power Purchase Agreements executed with them.
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