GMR Chhattisgarh Energy Ltd, a subsidiary of GMR Infrastructure Ltd, has announced that the consortium of lenders of GCEL have adopted a Strategic Debt Restructuring Plan, as permitted by the RBI.

The GCEL has allotted equity shares to all the lenders.

According to the SDR scheme, out of the total outstanding debt (including accrued interest) of Rs 8,800 crore, debt to the extent of Rs 2,992 crore has been converted into equity by which the consortium lenders would have 52.4 per cent shareholding and the balance 47.6 per cent would be held by GMR.

Following the conversion, the balance project debt stands at Rs 5,800 crore with Rs 2,992 crore equity held by lenders and Rs 2,721 crore equity held by the GMR Group. The lower debt levels would result in improving the long-term viability of the project.

GCEL is a 1,370 MW (2x685 MW) coal-based power plant at Tilda, Raipur in Chhattisgarh. The project was fully commissioned in March 2016 and has long-term fuel security in the form of two captive coal blocks.

The plant is currently operating under short-term PPAs through the exchange and bilateral routes.