The Rs 228 crore corporate guarantee extension from IREDA benefits GMR Power and Urban Infra

 The Rs 228 crore corporate guarantee extension from IREDA benefits GMR Power and Urban Infra

The Rs 228 crore corporate guarantee extension from IREDA benefits GMR Power and Urban Infra

Three Performance Bank Guarantees (PBGs), which must be submitted in order for the smart metering project to be implemented, will be granted by a scheduled commercial bank in favor of the DISCOMs in Uttar Pradesh in accordance with the counter guarantee given by IREDA.

The contract for the installation of smart meters in the Purvanchal area of Uttar Pradesh, which includes Varanasi, the Azamgarh zone, and Prayagraj, Mirzapur, was given to GMR Smart Electricity Distribution Limited in September 2023.

GMR Power and Urban Infra's shares increased by about 3% in early NSE trading after the company's December 30 corporate guarantee of Rs 228 crores to the Indian Renewable Energy Development Agency (IREDA). The company's shares was being traded by 10:30 a.m. Rs 56.65, up around 0.85%.

The corporate guarantee has been extended by issuing a counter make sure in favor of a scheduled commercial bank as well as for the benefit of three SPVs (special purpose vehicles) of completely owned GMR Smart Electricity Distribution Ltd., a subsidiary of the company, according to an application submitted by GMR Power and Urban Infra. The filing states that a scheduled commercial bank would provide three Performance Bank Guarantees (PBGs) with an equal total value in favor of DICOM in Uttar Pradesh, which must be deposited, based on the counter guarantee issued by IREDA. Execution of the Smart Metering Initiative.

The contract for the installation of smart meters in the Purvanchal area of Uttar Pradesh, which includes Varanasi, the Azamgarh zone, and Prayagraj, Mirzapur, was given to GMR Smart Electricity Distribution Limited in September 2023.

Thus far, shares of GMR Power and Urban Infrastructure have increased by almost 141%.