Haryana, UP, Rajasthan, TN start power loan rejig process

The four states have taken about Rs 43,000 crore of short-term liabilities

As many as 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 their 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 reporters here.

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

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

Under the scheme, 50% of the short-term outstanding liabilities would be taken over by state governments.

Balance 50% loans would be restructured by providing moratorium on principle and best possible terms for repayments.

As per the approved scheme, 50% of the outstanding liabilities up to March 31, 2012, is to be taken over by the state governments.

This shall be first 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.