New ‘UDAY’ for 2 discoms as Telangana takes over Rs 8,923 crore debt burden

• Posted in Power
• on January 6, 2017
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Chief Minister K Chandrasekhar Rao announced in the assembly on Wednesday that Telangana has joined the UDAY (Ujwal Discom Assurance Yojana) scheme, a move will provide much-needed relief to the debt-ridden power discoms.
The two discoms in the state are having a long-term debt of 11,897 crore (TSSPDCL – 7,392 crore and TSNPDCL – 4,505 crore) as on September, 2016, and are virtually in a debt-trap, he said. Under the scheme, the state government will take over 75 per cent of the discoms debt amounting to 8,923 crores out of the 1,1897 crore.
The balance loan amount of 2,974 crore will be restructured by the discoms by issuing bonds with government guarantee. As a result of taking over the loan, there will be a relief of interest burden of 890 crore per annum to the two discoms and consumers at large.
Discoms will be able to raise funds with competitive rates from the financial institutions towards capital expenditures. The chief minister pointed that the government of Telangana is already providing a subsidy of 4,584 crore to the discoms.
He said appreciating the performance of the discoms, REC and PFC have reduced the interest rates to 9.95 per cent from 12 per cent resulting in a saving of 200 crore interest per annum and overall 2,000 crore during the loan period of ten years.
The chief minister expressed confidence that by 2019, the state will be power surplus with a total installed capacity of 27187 mw, which will include power from Chattisgarh, NTPC, Ramagundam, Yadadri and Bhadradri power stations. Omri Casspi Jersey

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