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Discoms’ restructure: Haryana, UP, Rajasthan, TN begin process

According to reports, four States — Haryana, Uttar Pradesh, Rajasthan and Tamil Nadu — have taken over Rs 43,000 crore worth of short-term liabilities from their power distribution companies as part of the Government’s loan rejig process.

“Four States have already started restructuring the short-term liabilities of the discoms, about Rs 43,000 crore of short-term liabilities have been taken over by the States,” Ashok Lavasa, Additional Secretary Power Ministry, told presspersons here.

He said Haryana, Uttar Pradesh, Rajasthan and Tamil Nadu were now in talks with the financial institutions for the issuance of bonds.

Last year, in a bid to turnaround the ailing State electricity boards, the Government cleared the financial restructuring plan.

Under the scheme, 50 per cent of the short-term outstanding liabilities would be taken over by State Governments.

The balance 50 per cent loans would be restructured by providing a moratorium on principle and the best possible terms for repayments.

According to the approved scheme, 50 per cent of the outstanding liabilities up to March 31, 2012, would be taken over by the State Governments.

This would first be converted into bonds to be issued by discoms to participating lenders, duly backed by the State Government’s guarantee.

The outstanding liabilities of the State discoms as on March 2011 stand at about Rs 1.9 lakh crore and Rs 2.46 lakh crore till March 2012.

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