Web Exclusive | August 2013
GVK asks lenders to reschedule its power biz debt
Hit by gas shortages, GVK Power and Infrastructure has asked its lenders to reschedule loans worth $214 million to its power business. The company, whose interests span highway construction to coal mining, has asked lenders for an extended moratorium of two years on its debt.
The company has been badly affected by gas supply shortages that and its power plants were running far below their normal capacity.
To sell a stake in its airport business, the company is also in talks with potential investors.
The company runs airports in the financial capital Mumbai and in Bangalore. Demand for gas in India far outstrips consumption, but prices have been kept low for strategic industries, deterring investment in the sector.