Cash-strapped power distribution company Uttar Haryana Bijli Vitran Nigam (UHBVN) today said its lender UCO bank has agreed to reschedule the payment of its outstanding term loan of Rs 887 crore from 3 to 10 years. This decision was taken after a meeting held here between UHBVN officials and bank officials here. UHBVN has an outstanding bank loans of Rs 7,500 crore. Giving details,a spokesman said here today that the consolidated debt in the form of single term loan will be repaid over a period of 10 years including initial moratorium of three years on principal amount with effect from January 2012. However,interest charges due January 2012 to be serviced by the power utility as and when charged. The term loan will be repaid in 84 equal monthly installments from January 2015. UHBVN was facing financial crisis primarily because of no tariff hike taking place in last ten years while cost of coal and fuel has gone up by 50 per cent during the same period,he said. The bank would also sanction Funded Interest Term Loan (FITL) on all the existing term loans in lieu of interest due for the period from October,2011 to December,2011. FITL will be paid in 60 monthly installments from January 2012. The spokesman further stated that the existing rate of interest would continue without reset clause for a period of 10 years after restructuring with Base Rate of 11.75 per cent per annum. The Nigam has also allowed the pay to its employees as per the recommendation of 6th Pay Commission and cleared all due arrears on this account amounting to about Rs. 400 crore.
