Coastal Gujarat Power repays bank loans worth Rs1550-cr, TATA Stock Up
Coastal Gujarat Power repays bank loans worth Rs1550-cr, TATA Stock Up

Coastal Gujarat Power (CGPL), a wholly-owned subsidiary of Tata Power Limited, has announced that it has repaid Rs 1,550 crore of bank loans on 2 December 2020.

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 and its operations become more self-sustainable.  Post-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.

Meanwhile, CGPL said its amalgamation 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.

Reacting to the developments, shares of Tata Power Limited rose 3.40 percent to Rs71.60 per share on the NSE today.

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