The Delhi government has given the go-ahead to the three privately-owned power distribution companies (discoms) to avail the special loan scheme for discoms announced under the ‘Atmanirbhar Bharat’ package announced by the finance ministry. Since the loans would need a state guarantee and Delhi is a Union Territory, it has written to the ministry of home affairs (MHA) to provide state guarantee on behalf of Delhi.
If approved, it will make Delhi discoms the first to apply for this loan. The Finance Minister in her 15-point agenda to boost the economy, announced a special liquidity infusion scheme for the ailing power distribution sector. Centre is hopeful of infusing close to Rs 90,000 crore in discoms. The loan is strictly to pay off the dues of power generating and transmission companies. Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) will disburse the loan.
The three discoms -- Reliance Infrastructure-owned BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL), and Tata Power Delhi Distribution Ltd (TPCCL) -- have asked for loans amounting to Rs 6,350 crore. It will be used to clear dues towards the two Delhi government owned power generating units IPGCL and PPCL and the Delhi Transmission Limited, the transmission company.
“Due to power purchase costs and a significant drop in collection efficiencies from consumers following the Covid-19 outbreak, the sector will require liquidity infusion for sustenance. Delhi discoms have requested a loan from PFC under the proposed liquidity injection package of Rs 90,000 crores for meeting the liquidity crunch due to the impact of Covid-19,” said the Delhi government in its letter to MHA.
Business Standard has reviewed the letter.
Of the total amount of loans sought, BRPL has asked Rs 3,050 crore, BYPL Rs 2,300 crore and TPDDL Rs 1,000 crore to repay the principal outstanding dues of power generation units in Delhi.
Unlike the earlier discoms reforms scheme, the current one does not entail any debt takeover by the state government, making it easier for even private discoms to participate. Compared to the average performance of state-owned discoms across the country, the three private discoms in Delhi have better operational and financial parameters.