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Home News Power Sector News Centre agrees to finance restructure of discoms with riders

Centre agrees to finance restructure of discoms with riders

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DebtThe debt-ridden power distribution companies (discoms) in the state will get some breathing space with the state government agreeing after dillydallying for a long time on the financial restructure plan (FRP), proposed by the Centre.As per the new plans, the state government will take half of the short-term loans of discoms that are outstanding as on March 31, 2012 after they issue bonds to lenders. The maturity period of these bonds will be 15 years. The remaining half of the liabilities will be rescheduled by banks and financial institutions, which would have moratorium of three years for payment of the principal amount along with the interest.

However, the restructuring plans come with certain conditions. The state government will have to ensure that electricity tariffs are revised and that transmission and distribution losses are curbed. To ensure that the state complies with the FRP, the Centre has attached incentives with it.

"We will have to revise our tariff plans on a yearly basis. Also private players will now be allowed in the power distribution as we asked for roping them in," a senior discom official said. He added, "After the financial restructuring plan, we will have to present our growth and revenue generation target for te next three to five years." With the current restructuring, Rajasthan will be the biggest beneficiary, officials added.

Source- TOI

 

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