The Industrial Development Bank of India (IDBI) and Essar Power are in talks for rescheduling a Rs 50 crore loan and paring the interest on future repayments. This comes close on the heels of the company striking a similar agreement with ICICI and Essar group executives argue that this will bring down the power tariff.
Essar Power had borrowed about Rs 150 crore from IDBI in the mid-1990s when the prevailing rates were between 20 per cent and 22 per cent. The company is now arguing that with the prime lending rates hovering around 11.5-12 per cent band, the interest rates should be brought down to 14 per cent.
