Resolution of IL&FS Tamil Nadu Power Company Approved by PFS

Resolution of IL&FS Tamil Nadu Power Company Approved by PFS

Tamil Nadu Industry Review Team

PTC India Financial services (PFS) has decided to resolve one of its stressed loan accounts in the thermal-based segment - IL&FS Tamil Nadu Power Company Limited. The Coal-based Thermal Power Project is based at Cuddalore, in Tamil Nadu.

As per RBI circular dated June 7, 2019 and directives of National Company Law Appellate Tribunal (NCLAT), following resolution has been approved by PFS in line with lead lender Punjab National Bank (PNB), the company said.

"Post approval of the said resolution plan from NCLT/NCLAT, the loan account shall be classified under 'Green' category from 'Amber' category," it said. It is pertinent to mention that out of total outstanding of Rs 224.95 crore comprising principal Rs 183.84 crore and interest Rs 41.11 crore, PFS had already made provisioning of Rs 66.39 crore as on period ended September 30, 2020, it added.  

The decision of the company comes at a time when India's power ministry has proposed pushing back the deadlines for adoption of new emission norms by coal-fired power plants, saying an unreasonable time schedule might burden utilities and lead to an increase in power tariffs.

India initially had set a 2017 deadline for thermal power plants to comply with emissions standards for installing Flue Gas Desulphurization (FGD) units that cut emissions of toxic sulphur dioxide. That was later changed to varying deadlines for different regions, ending in 2022. Under the latest proposal, no new dates have been set. However, a final decision will have to be approved by the Supreme Court, which is hearing the issue.  

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