Three banks have downgraded account as NPA: BGR Energy

The Reserve Bank of India (RBI) logo is displayed on a gate outside the central bank's regional headquarters in New Delhi, India, Monday, July 8, 2019. India's central bank governor Shaktikanta Das praised the federal government’s efforts to rein in the fiscal deficit, saying it would help avoid crowding out private investment. Photographer: T. Narayan/Bloomberg | Photo Credit: T. NARAYAN

BGR Energy Systems Ltd. on Friday said it has received communication from three of its bankers that the company’s accounts have been downgraded as non-performing assets (NPAs).

The downgrade was based on the Reserve Bank of India’s divergence remarks to these banks inter alia on the financial position of the company, the Chennai-based company said in a stock exchange filing.

BGR did not disclose the names of the banks, but said the company was regular in servicing the interest and other charges due to these banks until 30 October, 2023.

Earlier this year, Tamil Nadu’s power distribution utility TANGEDCO issued a show cause notice to its contractor BGR over an inordinate delay in commencement of work for the 660-MW Ennore Thermal Power Station (ETPS) expansion project.

Published - November 03, 2023 07:08 pm IST