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Gujarat power plant losses: Tata, Adani, Essar stare at huge writedowns

After steel and telecom, lenders brace for NPAs in power sector

Losses at Gujarat based plants: Tata, Adani, Essar stare at huge writedowns

With their Gujarat-based power plants incurring hefty losses, the Adani, Tata and Essar groups are staring at write-downs in the thousands of crores of rupees.  Lenders fear the next wave of non-performing assets will come from the power sector as many projects became unviable after Indonesia changed its law that made coal imports expensive for these companies. Tata Power’s Mundra project under the special purpose vehicle Coastal Gujarat Power constitutes almost Rs 18,000 crore of its capital employed with negative returns till date.  Adani ...