Coastal Gujarat Power repays bank loans of Rs 1550 cr

Coastal Gujarat Power (CGPL), a wholly owned subsidiary of Tata Power, has announced that it has repaid Rs 1,550 crore of bank loans on 2 December 2020.

With this repayment and the earlier repayment of Rs 2,600 crore of bank loans made in October 2020, the entire bank loans of CGPL aggregating to Rs 4,150 crore have been fully repaid. After this repayment, CGPL's long term debt comprises only Rs 3,790 crore of bonds and debentures.

This action is in line with the Company's stated objective of repaying debt in CGPL to reduce the periodic debt servicing obligations of CGPL and thus make its operations more self-sustainable. With this repayment, CGPL will now be less reliant on parent company support and will make the Mundra operations sustainable. Meanwhile, the merger of CGPL with the parent company has made good progress. These steps are part of the overall restructuring of Tata Power group to prepare itself for the next stage of growth.

 

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