"Our interest is to see that power projects are not unduly delayed. But, electricity boards will have to find resources to pay for the power and we have to see innovative financing is done to get the projects going," IDBI chief general manager S Suryanarayanan said speaking to The Financial Express.

IDBI official said till the Icra study is completed, it would be difficult to come to an agreement with TNEB on escrow capacity. "Last week there was a meeting in Mumbai and we are still negotiating with TNEB. We have agreed for an escrow capacity of 2500 mw, but it is the additional escrow capacity that TNEB is claiming that has to be sorted out. A policydecision on this will be taken soon," he said.

IDBI has cleared funding of the 330 mw Pillaiperumalnallur (PPN) project to the extent of about Rs 100 crore. It had also recently agreed to provide term loans of Rs 200 crore to the two Sujana Steel projects in Tuticorin (one shifted from Gangaikondan to Tuticorin) and around Rs 60-70 crore for the GMR Vasavi project.

Meanwhile, a top TNEB source disclosed that agreements for escrow cover for Videocon's 1050 mw project, PPN's 330 mw, ST-CMS zero unit of 250 mw at Neyveli, Balaji Power's 106 mw project at Samayanallur and SIV Industries' 106 mw project at Samalpatti are ready for signing in two weeks. TNEB is awaiting IDBI's approval of escrow draft agreement with IPPs and also views of its legal consultant.

The source said that while the TNEB board has decided to go ahead with providing escrow cover for these projects, IDBI has still to clear the draft escrow agreement. "It is now for the IPPs to put pressure on IDBI to clear the agreement quickly so thatescrow agreements can be signed and the promoters can go for financial closure soon," the source noted.

TNEB expects the Icra report to be ready within a month and then based on consultation with IDBI hopes to consider providing additional escrow cover for other projects for which letter of intent has been given.