Lenders move to take control of Essar Power Gujarat

The lenders of Essar Power Gujarat Limited (EPGL) have converted 51 per cent shares of the company pledged with them into equity, with the remaining 49 per cent being retained by Essar Power Limited. The decision came after the Supreme Court’s refusal to provide compensatory tariff to imported coal-based plants. Currently, EPGL’s debt stands at Rs 45 billion with a 13 per cent interest cost. EPGL is a special purpose vehicle (SPV) of Essar Power Limited that operates the 1,200 MW imported- coal-based power plant at Salaya in Gujarat.