Delhi govt seeks Centre’s guarantee for discom loan package

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Published: June 9, 2020 7:31 AM

The Delhi power department had earlier decided to use 50% of the subsidy that it owes to the national capital’s private discoms to clear the latters’ due to the state-run power stations.

The Delhi discoms are seeking the loans to clear their Rs 15,000-crore dues to the state-run power gencos, IPGL and PPCL.

The Delhi state government has written to the Union ministry of home affairs (MHA) seeking central government guarantee for the Rs 15,500-crore loan sought by the power distribution companies (discoms) operating in the national capital. The Delhi discoms are requesting the loan under the Rs 90,000-crore scheme announced by finance minister Nirmala Sitharaman to inject liquidity into the electricity sector as a part of the ‘Atmanirbhar Bharat’ package.

As a condition laid down by power sector lenders PFC-REC, the loan to the discoms is to be backed by state government guarantees.  “In this regard, it is to inform that the Govt. of Union Territories and Govt. of NCT of Delhi (Amendment) Act, 2001, does not empower Delhi government to give any guarantee for any loan taken by discoms,” Delhi’s letter to MHA, reviewed by FE, pointed. TPDDL and BSES, the power distribution units of Tata Power and Reliance Infrastructure, respectively, supply power in the national capital and the state government holds 49% stake in these entities.

The loan scheme is designed to directly pay power generators (gencos) which owe money from discoms. The Delhi discoms are seeking the loans to clear their Rs 15,000-crore dues to the state-run power gencos, IPGL and PPCL. They also plan to clear the Rs 514 crore receivable to state’s Delhi Transco Ltd. “We have requested the ministry of power, Gol to consider the requests of discoms and credit the loan amount in the account of Delhi government,” the letter added.

The Delhi power department had earlier decided to use 50% of the subsidy that it owes to the national capital’s private discoms to clear the latters’ due to the state-run power stations. PFC-REC is said to lend the money at a spread of 150 bps from the competitive rates they will raise the capital. “Already some states like Punjab, Uttar Pradesh, Rajasthan, Manipur and Karnataka have evinced interest to avail this package,” PFC’s newly-appointed chairman and managing director Ravinder Singh Dhillon said last week.

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