Videocon Told To Tie Up Funds By April 30

The Tamil Nadu Electricity Board (TNEB) has set an April 30, 2000 deadline for the 1,050 mw, Videocon - promoted power project to attain financial closure. The project is coming up at Ponneri in Chengalput district near Chennai.

Confirming the move a senior TNEB official said, "The power purchase agreement (PPA) had lapsed on February 1, 2000. The promoters had requested for an extention. We have given them time till April 30, 2000 We hope the project comes through."

When contacted V N Dhoot chairman Videocon International, the flagship company of the Videocon group said, "We have already attained financial closure. We will communicate our decision much before the dadeline,". The TNEB official however said, "We are unware of the project attaining financial closure."

 

It is reliably learnt that earlier TNEB was considering scrapping the PPA is the earlier deadline of February 1, 2000 was not met. TNEB officials now say that an extension beyond April 30 too may be given in the interest of the project.

The project was originally slated to attain financial closure by April 30, 1999 but was stuck due to various problems.