The Rs. 3,500-crore Rosa thermal power project in Uttar Pradesh, for which a power purchase agreement (PPA) was signed late last month, is now facing a grave threat as the promoters, the A. V. Birla group and the UK-based Powergen Plc, have refused to provide a corporate guarantee as demanded by the institutional lenders. According to officials, although the Uttar Pradesh Government has agreed to provide a guarantee to back the payments by the UP State Electricity Board, the institutional lenders led by IDBI have refused to relent on their demand for a corporate guarantee being provided by the promoters as a pre-condition for sanctioning funds.

Cabinet may set price for RIL’s takeover of gas separation units

The Cabinet is likely to take a decision on the price which has to be paid by RIL for taking over the two gas separation units being set up by GAIL and Oil India. A note to this effect is being prepared by the Ministry of Chemicals and Fertilisers, the nodal authority for the sector. Since two gas separation units are being set up by GAIL and OIL respectively, it is only necessary for RIL to return the investment made by the two public sector undertakings (PSUs) under the Ministry of Petroleum and Natural Gas, in developing the separation units.

Talks to end Cauvery dispute fail again

Talks between Tamil Nadu and Karnataka over the Cauvery dispute collapsed with the Tamil Nadu Chief Minister, Mr. M. Karunanidhi, saying that the State would approach the tribunal again and his Karnataka counterpart, Mr. J. H. Patel, asserting that he was bound by the Assembly’s resolution to boycott the tribunal.

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