Tata Power fully repays Mundra unit's bank loans worth Rs 4,150 cr

Tata Power’s Mundra unit has been facing headwinds over the last several years over a lower contracted tariff and higher imported coal costs
Tata Power on Thursday said its Mundra subsidiary has made the second tranche of repayment for its bank loans. With this, the company said, all of the unit’s bank loans have been fully repaid. 

In a statement to the BSE, Tata Power said Coastal Gujarat Power (CGPL), a wholly owned subsidiary of the firm, repaid Rs 1,550 crore of bank loans on Wednesday. CGPL houses Tata Power’s Mundra ultra-mega power project, based in Gujarat.

“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 making its operations more self-sustainable.”  

The statement said the subsidiary in October repaid Rs 2,600 crore of bank loans.  “With this repayment (Rs 1,550 crore) and an 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.”

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