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 ban
Tag: SEBs
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Restructuring must be done only when viability is not in question
Rather than having viability problems, infrastructure projects are typically “front-ended”, so it is often the mismatch between the lending and the project’s revenue-making tenures that lead to an increased likelihood of restructuring, says Arundhati Bhattacharya, MD & CEO of SBI Capital Markets in an interaction with Sumantra Das.
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Power finance cos to see higher growth
A research report by Avendus Securities stated that power finance and housing finance companies are likely to have better time going ahead while finance companies engaged in the retail sector may see moderation in demand growth.
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Our infra lending will be cautious this year, based….
A ninety-three-year-old Union Bank of India just got a new head honcho. The genial CMD is a sleeves-rolled-up leader much of whose experience has been in operations, and will lead a lending portfolio of Rs 27,000 crore to infrastructure
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Do discoms need a bailout?
Experts debate how the franchise model in power distribution and Open Access will help or hamper the financial condition of state distribution companies.Excerpts from the 2nd Power Today Round Table.December’s Rs 500 crore bailout package announced by the Delhi Government to the Reliance owned discoms in that state has proved that it won’t just be the publicly owned ones that face financial crisis.
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Shunglu report: Can SEBs finally breathe easier?
Under pressure from banks, who are refusing to lend, state utilities are poring over the new reports by Shunglu and BK Chaturvedi Committees. Is franchise the best way forward, though? At 31 percent, the national average on AT&C losses are unacceptably high. Quantified, this amounts to nearly Rs 70,000 crore of losses, and the Finance Commission fears that this amount will rise to Rs 1.16 lakh crore by 2014-15.
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NTPC may fall short in FY12
NTPC may fall around 18 billion units short of its potential production capacity in the current fiscal, as state electricity boards (SEBs) turn away from purchases of expensive electricity produced with imported coal.
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Given our policies, we are lucky to get investors in India
Problems exist at both policy and execution levels in infrastructure sectors, making the country a high-risk investment destination as policymakers have lost out on India’s big advantage as an investment destination, Nasser Munjee, Chairman, Development Credit Bank Ltd
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Fuel scarcity hits investor interest
The investor interest in the power sector is diminishing as lenders are starting to apply the brakes on funding of new private generation projects.
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Power Min to issue norms for ailing utilities
The Ministry of Power is working on a set of guidelines to help state electricity boards (SEBs) cut their losses, estimated at a cumulative Rs 68,000 crore.