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ICRA revises bank loans rating of TNEB to [ICRA]D

Panchabuta has earlier mentioned that the Tamil Nadu Electricity Board (TNEB) has not paid for the power purchased from the wind farm developers in the last eight months. The arrears are now a whopping Rs 1200 crore.

In the middle of May this year, the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) had assured the windmill owners in the State that the pending dues for August, 2010 – September, 2010 for the wind energy supplied to the grid would be paid by the end of last month.

Subsequently, the Indian Wind Power Association has written to the Prime Minister seeking relief for outstanding payments worth Rs 1,200 crore from Tamil Nadu State Electricity Board (TNEB).

Last month, Tamil Nadu Generation and Distribution Corporation (TANGEDCO) said they start making payment to the Indian Wind Power Association (IWPA) towards dues of about Rs 1200 crore for supply of electricity since August last year.

According to reports, ICRA has come out with its report on bank loans rating. The research firm has revised rating for bank loans of Tamil Nadu Electricity Board to [ICRA]D.

ICRA has revised the rating outstanding from [ICRA]BB+ (pronounced as ICRA double B plus) to [ICRA]D (pronounced as ICRA D) against bank lines amounting to Rs 5,000 crore of Tamil Nadu Electricity Board (TNEB).

TNEB also has rating outstanding of [ICRA]A(SO) [pronounced as ICRA A (Structured Obligation)]  against the various debt programs  amounting to Rs. 1,700 crore . Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), an entity created as part of the unbundling process of TNEB, has rating outstanding of [ICRA]A(SO) [pronounced as ICRA A (Structured Obligation)]  against the debt program amounting to Rs. 1,500 crore. This rating continues to remain under watch with developing implications.

Pending completion of unbundling process, including availability of audited accounts for the trifurcated entities, ICRA has taken a consolidated view for the purpose of assigning the standalone rating.

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