Tata power gets bailout package
21 Feb 2013 12:16 AM GMT
Into the election year, the Delhi government has ensured that there is no fresh tariff hike for the power consumers in the city.
Delhi cabinet, in its meeting on Wednesday, approved a bailout package of Rs 245 crore to Tata Power Delhi Distribution Power Limited (TPDDL). ‘Keeping in view the principle of parity and equality among the Discoms, it has been decided to infuse 49 per cent of Rs 500 crore of share capital for redeemable cumulative preferential share into TPDDL,’ said a government release.
After the cabinet meeting, Chief Minister Sheila Dikshit briefed the media and said that another important decision which was taken in the cabinet was to give additional loan to Pragati Power Coporation Ltd (PPCL) and Indraprasth Power Generation Corporation Limited (IPGCL). Both are Delhi government undertakings.
Dikshit also stated that the cabinet approved the investment of loan to the PPCL to the tune of Rs 200 crore and Rs 100 crore to IPGCL. The city government, owing to its commitment to ensure 24x7 power supply to citizens of Delhi, has decided to approve the above investment. Three distrbution companies in their petitions before the Delhi Electricity Regulatory Authority (DERC) had demanded a rise in the power tariffs, as they claimed to be running in huge losses.
The cabinet, keeping in view the forthcoming Delhi Assembly polls, wrapped the bailout package in name of equity. BSES spokesperson claimed the Discoms were under financial crunch with accumulated recoverable revenue gap of around Rs 19,504 crore.
TPDDL is also running losses of Rs 4,500 crore. However, ‘we will not let this burden the consumers of Delhi. The Delhi government’s efforts are to save the consumers from bearing the brunt,’ said a senior officer said. The cabinet, in its decision on 26 December 2011, had agreed for infusion of additional equity so that BSES could raise loan from market. The cabinet took note of the fact that the TPDDL has been successful in bringing down AT&C losses from 41.1-11 per cent in 10 years since privatisation and its satisfaction level is also much better than other the other Discoms.
Delhi cabinet, in its meeting on Wednesday, approved a bailout package of Rs 245 crore to Tata Power Delhi Distribution Power Limited (TPDDL). ‘Keeping in view the principle of parity and equality among the Discoms, it has been decided to infuse 49 per cent of Rs 500 crore of share capital for redeemable cumulative preferential share into TPDDL,’ said a government release.
After the cabinet meeting, Chief Minister Sheila Dikshit briefed the media and said that another important decision which was taken in the cabinet was to give additional loan to Pragati Power Coporation Ltd (PPCL) and Indraprasth Power Generation Corporation Limited (IPGCL). Both are Delhi government undertakings.
Dikshit also stated that the cabinet approved the investment of loan to the PPCL to the tune of Rs 200 crore and Rs 100 crore to IPGCL. The city government, owing to its commitment to ensure 24x7 power supply to citizens of Delhi, has decided to approve the above investment. Three distrbution companies in their petitions before the Delhi Electricity Regulatory Authority (DERC) had demanded a rise in the power tariffs, as they claimed to be running in huge losses.
The cabinet, keeping in view the forthcoming Delhi Assembly polls, wrapped the bailout package in name of equity. BSES spokesperson claimed the Discoms were under financial crunch with accumulated recoverable revenue gap of around Rs 19,504 crore.
TPDDL is also running losses of Rs 4,500 crore. However, ‘we will not let this burden the consumers of Delhi. The Delhi government’s efforts are to save the consumers from bearing the brunt,’ said a senior officer said. The cabinet, in its decision on 26 December 2011, had agreed for infusion of additional equity so that BSES could raise loan from market. The cabinet took note of the fact that the TPDDL has been successful in bringing down AT&C losses from 41.1-11 per cent in 10 years since privatisation and its satisfaction level is also much better than other the other Discoms.
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