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AP power utilities yet to decide on debt recast

Source : BUSINESS_STANDARD
Last Updated: Mon, Nov 26, 2012 19:41 hrs

Andhra Pradesh is likely to take a decision next week on whether to opt for the debt restructuring package announced by the power ministry for state power utilities.

“Different views are being expressed on the benefits of joining the debt restructuring package. We still have time up to December to convey our decision to the power ministry. We will take a view next week on this matter,” M Sahoo, principal secretary, energy department, told Business Standard.

Power utilities have reported total accumulated liabilities of over Rs 21,000 crore, including Rs 13,000 crore in bank debts as on March, 2012, according to officials.

Though the discoms are facing difficulties in raising fresh loans, they are not as desperate as some of their counterparts in the country since they are backed by the state support in terms of power subsidy besides a hefty increase in power tariff this year to run the show.

However, the ongoing cut in power supply to industrial and commercial consumers is resulting in revenue shortfall, which has made the discoms look for some relief in meeting the debt servicing obligations. The monthly interest outgo of the power utilities is said to be around Rs 200 crore.

No indicative price for solar power projects
The government will be inviting tenders for setting up solar power projects in the state soon. However, it will not indicate any benchmark price, the principal secretary said.

The government had recently decided to facilitate 1,000-Mw solar power projects in the private sector in the initial phase. Sahoo said the government expected power developers to quote competitive rates by leveraging the current technologies.




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