The Centre is yet to extend the lapsed counter-guarantee for the Bhadrawati power project promoted by the Ispat group.
In another development, Vizag power project promoters Hinduja-National Power Corporation Ltd
have applied for another extension of the counter-guarantee, set to lapse on Thursday.
The counter-guarantee for the 1,000 mw Bhadrawati project ended in January. The promoters were to have achieved financial closure by this time.
Officials said as the promoters failed to meet the conditions and did not ask for extension, the finance ministry referred the extension of the counter-guarantee to the law ministry.
Both promoters and respective state governments have to fulfill certain conditions before the counter-guarantee comes into force. This includes finalising power purchase agreements and certification of the project cost by the state government.
The Ispat group and the Hindujas were granted a six-month extension each last August to achieve financial closure. Both had signed their counter-guarantees in August 1998.
