Reports indicate that the Rs 1.9 lakh crore debt restructuring package announced by the central government for state electricity boards (SEBs) has not received much response.
It is learnt that no major state has yet entered into a memorandum of undertaking (MoU) with the centre for debt recast. states such as Rajasthan are negotiating with banks for loan restructuring.
The finance minister urged the distribution utilities to enter into MoUs with the centre for financial restructuring of discoms But some industry observers feel that the scheme may not attract much response in the absence of significant fiscal incentive.
Meanwhile, industry observers feel that the Union Budget 2013-14 had little to offer to thermal coal and power sector in general, except the emphasis on blending domestic and imported coal and marketing them through pooled pricing mechanism.
The Budget depends on “PPP policy framework, with Coal India (CIL) as one of the partners”. CIL recently took an initiative to expand the scope of appointing mine developer and operators (MDO). According to Chairman S Narsing Rao, the company is hopeful of making progress in awarding a few such contracts by the first half of 2013-14.
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