Two state-owned lenders which loan money to power projects — Power Finance Corporation and Rural Electrification Corporation — have bailed out Reliance Infrastructure-owned BSES power distribution companies in Delhi from a payment crisis, which was looming large on the city’s power supply situation.
The two lenders have collectively approved a loan of Rs 1,000 crore to the BSES firms, which were to meet the Supreme Court’s May 31 deadline to pay outstanding dues to state-owned supplier NTPC.
Sources in the Power department said the “short-term” loans have been approved for one year. NTPC has been kept in the loop regarding the developments, sources said.
The development follows a letter by the Delhi Electricity Regulatory Commission (DERC) to the two lenders, which recognises regulatory assets (RAs), or dues from consumers, at Rs 11,431 crore to discoms as on March 2012. DERC had assured the lenders that a plan to recover the dues had been announced.
According to the DERC, a plan for recovering Rs 8,000 crore over a period of six to eight years is in place, while the liquidation plan will come into effect for the tariff for 2014-15, “whenever it is announced”.
BSES Yamuna and BSES Rajdhani cater to 70 per cent of the city’s 3.2 million consumers. The Supreme Court, on May 6, had directed the BSES discoms to pay Rs 690 crore to NTPC by May 31 for the power purchased since January this year. The NTPC had threatened to cut 2,000-megawatt supply in case the dues were not received.