Muzaffarpur Thermal Power project being developed by Kanti Bijlee Utpadan Nigam Limitedis in big trouble as the SBI led consortium has refused to extend further funding to the project. KBUNL had tied up loan of Rs 2,341.28 crore with SBI Consortium in September, 2011, of which Rs 1,516 crore has been withdrawn till date. The project which should have been commissioned by January 1, 2013 has been delayed and the new date of commissioning of unit 3 of the project will be October, 2014 whereas revised COD for unit 4 will be January, 2015. According to the consortium further amount cannot be given to the company as the loan disbursement period agreed upon in the loan agreement has elapsed. The consortium is willing to extend the loan disbursement period only if the project promoter brings in fresh equity to fund the cost overrun due to the delayed completion of the project.
