The Power Finance Corporation is targeting the transfer of the shell company - Coastal Gujarat Power Limited (CGPL), floated for the Mundra Ultra Mega Power project in Gujarat to Tata Power by 1 May 2007.

The shell company was floated by PFC to take statutory clearances for land, water linkages and environment from Gujarat government. Along with merging the shell company with itself, Tata Power will sign the power purchase agreement (PPA) and submit performance bank guarantees worth Rs.300 crore. The company is given a schedule of about 48 months for setting up the project in five units of 800 MW each. The financial closure is expected around August 2007.

On 28 December 2006, Tata Power had received the letter of intent (LoI) for award of the project.

The transfer of the shell company, the signing of the power purchase agreement (PPA) and the submission of bank guarantees was to have been done within 60 days of getting the letter of intent (LoI) that is by 26 February 2007. However, due to a delay in statutory clearances to be taken from the state government, PPA and merger of shell company for Mundra project didn't take place.

Also See:

Mundra UMPP: Tata Power eyes Australia for coal supplies (29-Dec-06)

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