The company, which expects to achieve financial closure for the Rs 4,631-crore over the next six months, has also demanded a monthly minimum coverage amount for the project.

Mantralaya sources confirmed the development saying it is yet to take any decision in this regard. If the government concedes to Cipco's demand, this will be the second power project after the Reliance's 410mw project to be covered under the escrow arrangement. For Reliance, the escrow cover has been granted to the extent of 100 per cent of the monthly payments.

The company has argued that the Dabhol power project (both the phases) has managed to get loans on the basis that the escrow is available for the full termination payments in addition to the counter-guarantee protection to the foreign lenders for Phase-I.

Cipco has said that the escrow security should be available to cover all the payment obligations of Maharashtra State Electricity Board (MSEB) under the power purchase agreement (PPA), which includes tariff payment, payment of 50 per cent of the Government of India counter-guarantee fees and the PPA termination payments.

The MSEB has already agreed to cover the tariff and the counter-guarantee fees payments under the escrow even though the agreement to cover termination payments is yet to be reached. Cipco has contended that though the central counter-guarantee provides protection to the foreign lenders to the extent of outstanding foreign debt, in the event of termination, it is not sufficient. "The Indian lenders and the sponsors are still exposed taking into account the difficulties in invoking the other guarantees," it said. The company said that the domestic lenders, who have not been protected under the Government of India counter-guarantee, be covered by escrow security arrangements.