RBI eases discoms’ debt recast; UP to go for privatisation
A UP government official told FE that restructuring under the central scheme would span 10 years, involving a consortium of 21 banks. “The state government has agreed to take over and service 50% of the loan amount out of the state budget in the next 10 years and it will also raising money from investors in the form of bonds,” he said, adding that the package is linked to the commitment by the state that it would increase power tariff by 30 % in 2012-13 and 15% in the next two years, bring down ATC losses by 5% every year and increase revenue collection from 88% to 98%.
(With inputs from Noor Mohammad)
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