TPDDL seeks debt recast package

It is a regulatory overhang in the states because over a period of time tariff revision did not take place

Tata Power Delhi Distribution Ltd (TPDDL), which supplies power in the north and northwest parts of the national capital, on Tuesday said it had sought relief under the Union government's debt recast scheme due to delay in rate revision.

"Financial Restructuring Package is a consumer-related initiative, because rates are always structured in way that consumers do not get impacted and they get power at an affordable rate. Same is true in Delhi or any other state," TPDDL chief executive officer and executive director, Praveer Sinha, told reporters in New Delhi.

The company is a 51:49 joint venture between Tata Power and Delhi government.

Sinha said that it is a regulatory overhang in the states including Delhi because over a period of time tariff revision did not take place.

The company had written to then Chief Minister Shiela Dikshit for carrying forward its concern to the Centre.

"We wrote to them (Delhi Government) more than a year back on the matter and they said they will take it up with the Ministry of Power," Sinha added.

Last year February, DERC also gave a statutory advice to Delhi government informing them that so much of regulatory assets are there and steps need to be taken to liquidate these regulatory assets.

The Centre in September 2012 approved restructuring of Rs 1.9 lakh crore debt of state electricity boards. Under the scheme, 50 per cent of the short-term outstanding liabilities would be taken over by state governments.

Balance 50 per cent loans would be restructured by providing moratorium on principle and best possible terms for repayments. On asked about the issue of Open Access in power distribution, Sinha said, "Those are the things which take time, it (open access) will not happen soon and right now we have an issue which require immediate attention."

He was referring to looming power crisis in Delhi as power producer NTPC has asked two discoms BSES Rajdhani and BSES Yamuna to clear dues by February 10 failing which it will suspend supply to the two discoms.