Tata Power Delhi Distribution Limited (TPDDL) has written to its shareholders the Delhi government and Tata Power for infusing a share capital of Rs 500 crore in proportion to their shareholding.
The Delhi government has been requested to pay 49 per cent (Rs 245 crore) through its Delhi Power Company Limited while 51 percent (Rs 255 crore) will be infused by Tata Power Company Limited.
Fresh infusion of share capital is necessary as TPDDLs liquidity position is strained in the absence of cost-reflective tariffs over the past many years. This has led to an increase in the revenue gap. Also,financial institutions are shying away from offering any fresh debt financing owing to the adverse debt-equity ratio and general market sentiments, TPDDL said in a statement issued on Wednesday.
Officials said that the tariff order for the fiscal 2012-13 and True Up up to 2010-11 to be issued by Delhi Electricity Regulatory Commission,the regulatory body,has been delayed and is expected only in July,thereby adding to the regulatory overhang.
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