Dilip Bisoi

Bhubaneswar, Jan 2: Orissa Hydro Power Corp (OHPC) is facing serious financial crunch because of the non-payment of dues by the state-owned transmission concern Gridco. Given the present trend of payments, the total amount of dues from Gridco is expected to touch Rs 521 crore by the end of this fiscal. It was Rs 380.63 crore as on March 31, 2001.

Moreover, OHPC is also not taking any measures to realise the dues from Gridco. The only step taken so far is a bipartite agreement for payment of 75 per cent of the current monthly bill or Rs 20 crore, whichever is higher. But Gridco has flouted the agreement with impunity. OHPC has been recently advised by the Chennai-based Camus Emerging Venture Pvt Ltd to approach the Orissa Electricity Regulatory Commission (OERC) for breach of agreement by Gridco.
Camus, which has been entrusted to make a critical financial analysis of OHPC, has submitted its report to the corporation.

Orissa Hydro Power Corp, which has five hydro power stations with a total installed capacity of 1711mw under its belt, is generating a total of 5508 million units. A major producer of hydro power in the eastern region, it accounts for more than 70 per cent of the hydro power generating capacity of the region. The corporation is consistently making profit since inception. “Inspite of making substantial profit, the corporation has not been able to unlock the same value due to high level of sundry debtors. Therefore, while the fund flow shows a healthy trend, the corporation is facing serious cash crunch,” observed Mr Camus in its report. Stating that OHPC’s financial “position will continue to remain alarming” till 2005-06, Mr Camus has pointed out that the paid-up equity capital of the corporation for the year will be higher by Rs 626.42 crore, the total being Rs 947.22 crore.

The additional amount will flow from the conversion of government loan of Rs 500 crore and bonds worth Rs 126.42 crore. The equity base is likely to go up to Rs 1,073.64 crore as on March 31, 2004 and Rs 1,203.9 crore as on March 31, 2006 on account of conversion of the residual value of the debentures.

The current assets level is expected to be higher at Rs 503.25 crore and Rs 574.14 crore for the next two years and increase further in the subsequent three years. Out of this the dues from Gridco will constitute the major part and would be in excess of Rs 375 crore and Rs 490 crore for the current year and the following year respectively.

Mr Camus has suggested several fiscal measures to be taken up immediately to bail out OHPC from the mess. Since both OHPC and Gridco are owned by the state government, a tripartite arrangement could be worked out to adjust dues. The government loan of Rs 500 crore and bonds of Rs 126.42 crore to OHPC could be adjusted against the dues from Gridco.