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Published on 10/12/2019 10:11:01 AM | Source: IANS

ITPCL reports 82% PLF, may turn profitable soon

Posted in Stock Market| #Stock Market #Power Sector

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 IL&FS Tamil Nadu Power Company (ITPCL) recorded an all-time high plant load factor (PLF) of 82 per cent in the 8 months of this financial year.

According to a company statement, ITPCL Cuddalore generated 735 million units and reported Rs 336 crore in revenue in October. The trend has sustained as the plant continued to record high monthly PLF of 80 per cent, generating 690 million units and reporting Rs 315 crore in revenue in November.

The power plant had generated 360 million units in November 2018.

ITPCL that posted losses in the last two financial years is expected to turnaround soon.

According to the statement, during the 8 months of FY20, the company recorded 65 per cent PLF with generation of 4,567 million units, compared with 55.2 per cent PLF and production of 3,879 million units in the year-ago period.

The company operates coal-based power plant with two units of 600 MW capacity each at Cuddalore in Tamil Nadu.

The company has a long-term power purchase agreement (PPA) with TANGEDCO for 540 million and medium-term PPA with PTC for 550 MW. It's a 'amber' category company and has undertaken efforts to restructure loans.

The key impediment in the ITPCL's restructuring has been non-payment of about Rs 1,400 crore towards outstanding dues by Tangedco and PTC till November.

The company has approached financial creditors with a restructuring proposal. It has aggregate term loans of Rs 5,557 crore with large lenders being PSU banks, including PNB, UBI, SBI, LIC and BOB.

"We are delighted to announce the operational turnaround of ITPCL in the last 8 months and look forward to resolving debt in consultation with lenders", said C.S. Rajan, Managing Director, IL&FS.