Mahagenco not keen to take over RattanIndia's Nashik project

State-run power firm Mahagenco is not keen on taking over the Rs 3,000-crore debt RattanIndia Power owes to Power Finance Corporation (PFC), by buying the former's thermal project in Nashik, a top official said.

RattanIndia Nasik Power, a subsidiary of RattanIndia Power, had proposed a 2,700 MW project, out of which 1,350 MW has been commissioned so far, as per the company's website.

PFC had earlier said it is in talks with the state government to take over one of the asset of RattanIndia in Nashik to recover its dues.

"Yes we have got the proposal from PFC to take over the RattanIndia's thermal power plant in Nashik and we are currently evaluating its feasibility," state principal secretary (energy) Arvind Singh told PTI.

However, according to the Maharashtra State Power Generation Company (Mahagenco), taking over the project will not be a viable proposition, as the plant is facing issues like lack of proper rail connectivity for coal supply and water shortage.

"Taking over the project is like buying a white elephant. They (PFC) had said that since Mahagenco already has a 630 MW (210 MW x 3) plant near Nashik at Eklahare village, and RattanIndia's project is new, it will help the state add to its thermal capacity," a top Mahagenco official told PTI on condition of anonymity.

He further said the project is facing many challenges and is currently stranded.

"Already, we are facing coal supply issues, mainly because of lack of adequate railway connectivity. Therefore, the new project will further add to our woes," he added.

PFC, which has an exposure to the tune of Rs 51,000 crore to the private sector, has nearly Rs 31,000 crore worth of stressed loan assets.

As the part of its resolution plan, the company has taken various initiatives to recover the dues, by offering the stressed assets for sale.

Around nine projects with a cumulative exposure of Rs 8,100 crore are being resolved through the National Company Law Tribunal (NCLT).

"We have time till August, and by then we hope to finalise resolution plans for most of our stressed assets. If we are unable to come to a resolution, the projects will then by default go to the NCLT," PFC chairman and managing director Rajeev Sharma had said earlier.