New Document top_band
 
Business Standard

AP power utilities yet to decide on debt restructuring facility

Power utilities have reported a total accumulated liabilities of over Rs 21,000 crore, including Rs 13,000 crore in bank debts as on March, 2012

Related News

Andhra Pradesh is likely to take a decision next week on whether to opt for the debt restructuring package announced by the power ministry for state power utilities.

"Different views are being expressed on the benefits of joining the debt restructuring package. We still have time up to December to convey our decision to the power ministry. We will take a view next week on this matter," M Sahoo, principal secretary, energy department, told Business Standard.

Power utilities have reported a total accumulated liabilities of over Rs 21,000 crore, including Rs 13,000 crore in bank debts as on March, 2012, according to officials.

Though the discoms are facing difficulties in raising fresh loans, they are not as desperate as some of their counterparts in the country since they are backed by the state support in terms of power subsidy besides a hefty increase in power tariff this year to run the show.

However, the ongoing cut in power supply to industrial and commercial consumers is resulting in revenue shortfall, which has made the discoms look for some relief in meeting the debt servicing obligations. The monthly interest outgo of the power utilities is said to be around Rs 200 crore.

No indicative price for solar power projects
The  government will be inviting tenders for setting up solar power projects in the state soon. However, it will not indicate any benchmark price, according to the principal secretary.

The government had recently decided to facilitate 1,000-Mw solar power projects in the private sector in the initial phase. Sahoo said the government expected power developers to quote competitive rates by leveraging the current technologies.

Read more on:   
|

Read More

No information dissemination before annual policy in May: Subbarao

Reserve Bank of India today said it there is no need to explain the monetary policy and it stands by monetary policy statement.

Quick Links

Back to Top