Power Minister Jyotiraditya Scindia on Tuesday told the state power distribution companies (discoms) that the Centre has played its role by helping the discoms with recasting their debt and it was now for the states to do their bit and get their house in order.
To bail out the discoms from the financial cesspool that are in, the Centre has mooted ` 1.9 lakh crore debt restructuring plan. Eight states including Andhra Pradesh, Kerala, Haryana, Rajasthan, Uttar Pradesh and Tamil Nadu are on board for the restructuring plan.
Recast of finances may also lead to discoms refrain from hiking tariff frequently.
“From our point of view we have outlined the policy and the transitional financial mechanism. Now the states need to do their job and negotiate with their individual bankers and come back to us,” Scindia said here.
He was speaking on the financial restructuring plan (FRP) for discoms.
“There are certain pre-requisites that need to be met in the FRP. Those are not negotiable. Therefore if you qualify on those pre-requisites we are more than happy to assist,” Scindia told the states.
“We have pretty much clinched the issues with the eight states. Now the eight states are negotiating with their bankers,” Scindia said.
ICICI Bank Managing Director Chanda Kochhar, BHEL Chairman and Managing Director B P Rao and Jaypee Group Chairman and CEO Manoj Gaur, among others attended the meeting.
Next meeting on June 26 will discuss issues related to amendments to the Electricity Act.
