KOCHI: As uncertainty looms large over the Rs 295-cr waste-to-energy plant at Brahmapuram after London Investment Consultancy Ltd (LIC), the financial partner and holding company of GJ Eco Power Private Ltd, filed for bankruptcy in London, the company officials told Express it has tied up for project financing activity by bringing in an equity investment from a large European power generation company.
According to Giby George, GJ Eco Power Private Ltd managing director, the European company carries a wealth of experience in power generation and waste-to-energy conversion. “As part of any typical project financing activity, we have agreed for an equity investment from a large European power generation company. We will disclose the company details soon after completing all relevant procedures,” said George.
He also denied the report that LIC Ltd, which has been the 26 per cent equity holder of the GJ Eco Power and has a liability of 1,62,420 pounds (Rs 1.44 crore) and tangible assets worth 39,030 pounds, is facing insolvency. “It is incorrect that London Investments Consultancy (LIC) is undergoing insolvency. It has been placed under administration as part of the Share Transfer agreement,” Giby said.
Meanwhile, the company has also faced a jolt with the Corporation denying permission to lease out 20 acres at Brahmapuram for mortgaging. “This is a procedural activity progressed through a corporation as our Indian debt institutions requested conversion of the land licence into land lease. This is of low significance as anyone can understand no financial institution will provide debt funding for such a large project based on government land as lease security. This will not affect the financial closure of the project as the investment will be from our international partners through our guarantees. However, it is the responsibility of the government and the Corporation to provide all required support for the project as a PPP partner to establish the project efficiently,” Giby said.
He also said the company is committed to delivering the waste-to-energy plant at Brahmapuram. “Till date, we have spent over Rs 30 cr in completing the front-end engineering and design (FEED) aspects. My 30-member project team, which includes British and German engineers, is based in Kochi since January 2016. It has taken a significantly long time for the government and the Corporation to allocate the land and provide the required permit,” he added.