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Tamil Nadu power utility expects restructuring nod

Published: 20th December 2012 01:29 PM  |   Last Updated: 20th December 2012 01:29 PM   |  A+A-

By IANS

The Tamil Nadu government and the state power regulator are expected to give their nod to the financial restructuring package of the state's power utility TANGEDCO, a senior official said Thursday.

"We had appointed ICRA as consultant for drawing up the scheme and submitted it to the government and TNERC (Tamil Nadu Electricity Regulatory Commission) for approval," the official told IANS preferring anonymity.

According to him, the restructuring would be according to the union government's scheme whereby 50 percent of the company's short term debt would be transferred to the state government and the balance would have a three-year moratorium though interest would have to be paid out.

Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) is expected to turn around in three years and by 2015-16, the company should show good results, he said.

There will be state- and central-level committees to monitor various aspects once the restructuring is approved.

TANGEDCO has to complete the formalities by the end of this month.

According to officials, TANGEDCO's short-term debt is around Rs.24,000 crore and once the scheme gets the approval and the moratorium begins, the company's financial position would ease so as to pay its dues.

"Monthly, the payout is around Rs.1,000 crore in servicing the loans and when the scheme kicks in, the loan payout will come down enabling the company to pay its pending dues to power generators and others," the official said.

The union government this year approved the scheme of financial restructuring of state power distribution companies whereby by 50 percent of the short term outstanding would be taken over by the state government.
 



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