The default escrow agreement for the
4,000 MW Mundra ultra mega power project was signed on 30 November 2006 between
Power Finance Corporation, Gujarat Urja Vikas Nigam and 15 banks.
The agreement ensures payment security
of the seller in case of failure of the buyer to pay. The buyer and seller must
however execute a separate default escrow pact with the banks in favour of the
shortlisted bidder.
Around 11 private companies have been
selected for the Mundra project and bids will be opened on 7 December 2006. The
project is targeted for award for 31 December 2006.
Gujarat will get a power allocation of
1,900 MW out of the total 4,000 MW. Gujarat Urja Vikas Nigam has already signed
the agreement to this effect.
ultramega5
Related Links:
Project
profile