Andhra Pradesh power utilities will be seeking a relief on Rs 16,000-crore liabilities under the Union power ministry’s debt restructure package.
“The ministry has already appointed Syndicate Bank to prepare the restructure plan, which will take 3-4 months to finalise,” said Hiralal Samaria, chairman and managing director of APTransco. The present estimate of the total liabilities is Rs 16,000 crore but the figure may vary a bit as the auditing of the accounts for 2011-12 is yet to be completed, he told reporters here on Thursday.
These liabilities include Rs 11,900 crore bank loans and the outstanding dues payable to other companies, including the state power generating company APGenco, according to him. The said liabilities are a part of close to Rs 23,000-crore accumulated losses on the books of power utilities, though the discoms had categorised the rest as receivables.
Under the debt restructuring package, half of the liabilities will have to be borne by the state government while for the remaining, a 10-12-year loan reschedulement along with a 2-3 year moratorium on payment and a reduced rate of 9 per cent interest is being offered to the discoms, Samaria said.
The ministry is also offering a grant to the state to the extent of 25 per cent of the total liabilities to make the proposition attractive to them as well.
“The interest rate reduction alone is a huge relief to discoms, which have been shelling out Rs 130-140 crore a month on interest payment at rates as high as 13 per cent. With the long-term reschedulement of loans the financial pressure on them will greatly come down resulting in some savings, which could be used for capex requirements,” Samaria explained.
To qualify for the central package, he said, the discoms had complied with all such obligations including the regular filing of annual revenue requirement with the regulator, clearance of dues from the government and introduction of pre-paid meters.