Govt appoints nodal banks for SEB restructuring in 10 states

SBI, Central Bank, PNB, BoB, Canara Bank will assist states in preparing restructuring plan

The department of financial services (DFS) has appointed nodal banks for preparing financial restructuring plans (FRPs) pertaining to the restructuring of State Electricity Boards (SEBs) of 10 states.

A senior government official associated with the process, said the co-ordinating banks had been appointed for seven states that were part of the restructuring plan already announced by the centre and also three other states which had shown willingness to join the scheme.

Among the seven states, Central Bank of India, Punjab National Bank (PNB) and Bank of Baroda will assist Rajasthan in preparing FRP.

Canara Bank and OBC will be the nodal banks for Haryana and PNB will assist Uttar Pradesh.

Canara Bank will also be the nodal bank for Punjab and Karnataka. Punjab, though, had expressed unwillingness to take part in the SEB restructuring plan, said the official.

While State Bank of India will assist Tamil Nadu in concretising FRP, Syndicate Bank will help Andhra Pradesh prepare the plan, which would be central to the restructuring exercise.

The states other than these seven which have given their nod are Jharkhand, Himachal Pradesh and Kerala. Allahabad Bank will be the nodal bank for Jharkhand, Uco Bank for Himachal Pradesh and Canara Bank for Kerala.

The official said these banks were the main lenders to the SEBs in the respective states.

The work for preparing FRPs had already started in the seven states for which the restructuring plan has already been announced, he added.