Debt recast plan for ailing SEBs stuck as states go slow
Although eight states, including Uttar Pradesh, Rajasthan, Haryana, Punjab and Tamil Nadu, have expressed interest in tapping the R1.9-lakh-crore-debt restructuring lifeline thrown by the Centre to the SEBs, only Rajasthan has submitted its proposal so far.
Union power secretary P Uma Shankar said that his ministry has not yet taken a view on extension of last date for submission of the debt recast proposal, but he did not rule out the possibility. “We have not yet thought about it (deadline extension),” he said.
Although states like UP and Tamil Nadu have appointed consultants to work out their debt restructuring plan, they may not be able to meet the current deadline for submission of proposal. The proposal has to be approved by the respective state cabinet and concerned electricity regulatory commission.
Moreover, state governments are required to take over half of their SEBs’ debts, which is not easy given that they also have to comply with their fiscal discipline targets. “The process of finalising the debt restructuring plan for SEBs will take time as it involves consensus across the government,” said Shubranshu Patnaik, senior director, consulting (energy and resources), Deloitte India.
For one, UP is yet to initiate the process for securing regulatory approval for their SEBs’ financial restructuring plan. “We have not yet received any debt recast proposal for SEB from the state government,” a
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