Coastal Gujarat Power Ltd (CGPL), a wholly-owned subsidiary of Tata Power, has repaid Rs 1,550 crore of bank loans to make its operations more self-sustainable.
With this repayment and the earlier repayment of Rs 2,600 crore of bank loans made in October, 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 Rs 3,790 crore of bonds and debentures.
The move 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, CGPL said its merger 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.
Tata Power is India's largest integrated power company and, together with its subsidiaries and jointly controlled entities, has an installed or managed capacity of 12,772 megawatts.
( With inputs from ANI )
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