PSPCL awaits details of bailout package

DP CORRESPONDENT
Chandigarh

The debt-ridden power utility Punjab State Power Corporation Limited (PSPCL) has developed hopes that the bailout package announced by the Centre appears to be beneficial to put its fiscal health on track.

However, PSPCL is still awaiting complete details of financial restructuring scheme to apply for the same.

“It (the financial restructuring scheme) appears to be beneficial for the power utilities as it will help in raising fresh funds from banks and reschedule the short-term liabilities,” a senior PSPCL official said.

Stating that the corporation is still awaiting the complete details of the scheme, PSPCL officer said after getting the details, the power utility would take any call on the same. The Cabinet Committee on Economic Affairs had approved Financial Restructuring of state distribution companies. Under this scheme, 50 per cent of short term liabilities of power utilities would be taken over by state governments and they would be converted into bonds to be issued to lenders, backed by state government guarantees. Balance 50 per cent loans would be restructured by providing moratorium on principle and best possible terms for repayments.

PSPCL has short-term liabilities to the tune of Rs 9,500 crore outstanding towards various banks. With expected revenue of Rs 19,000 crore in current fiscal, the utility had projected revenue gap of Rs 8,984 crore for 2012-13.

Similarly, Haryana government is also waiting for the complete detail about the scheme before implementing the same in the state.

“We have not received the detail of the scheme,” a senior official of Haryana Power Department said here. But he said the scheme should enable the power utilities to raise fresh lending and rescheduling of the current loan liabilities.

Haryana power distribution companies have short-term liabilities of Rs 11,000 crore so far, he said.