NEW DELHI, August 19: The government today issued the counter guarantee for the 1040 mw thermal power project in Visakhapatanam promoted by Hinduja National Power Corporation and UK's National Power Corporation. This is the third fast-track power project for which the BJP Government has issued counter guarantee and covers a foreign debt of $ 818 million dollars in the $1.2 billion dollar project.The agreement today was signed between Gajendra Haldia, joint secretary in the Finance Ministry and managing director of Hindujas' National Power Company A Gavisidappa.While the counter guarantee has been signed, it will be effective only once the financial closure is achieved by the end of this year. But the financial closure could run into problems as some issues are yet to be sorted out. Ashok Hinduja and Gajendra Haldea, joint secretary in the Finance Ministry accepted that the Government was yet to thrash out the coal supply and transport agreement (CSTA). Since the Railways cannot bear the supply andtransport risk, some other mechanism needs to be created. Haldea said that the Government would clear this issue within the next few days.The hindujas hold 51 per cent equity in the project with the remaining held by UK's National Power.
