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Home News Power Sector News Delhi govt. bail out BSES by wasting taxpayer money

Delhi govt. bail out BSES by wasting taxpayer money

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DelhiWith a looming threat of a power blackout in most parts of the capital city, the Delhi government on 26-12-2011 agreed to bail out reliance owned BSES Rajdhani and BSES Yamuna by infusing equity worth Rs 500 crore in the two companies. Following the intervention of Delhi government, NTPC gave the BSES discoms time till January 7 to clear payments.The bailout is conditioned on the discoms' private owners, Anil Ambani's Reliance Infra, matching it in accordance with their shareholding. For the cashstrapped companies, the government's consent to invest is expected to clear the way for a bank loan needed to make overdue payments.

The government will inform power regulator, Delhi Electricity Regulatory Commission, of its decision during Tuesday's critical hearing.

Together, the two BSES companies have defaulted on payments of over Rs 3,000 crore and have received a number of warnings from generation and transmission companies. On December 4, state-run NTPC had threatened to stop supply to Delhi over outstanding dues of Rs 194 crore.

CM Sheila Dikshit's decision to help out the discoms was announced at a Cabinet meeting presided over by her. Senior government officials said the CM had apprised Prime Minister Manmohan Singh, finance minister Pranab Mukherjee and Union power minister Sushil Kumar Shinde of the threat to Delhi's power supply if the BSES companies did not meet payment schedules. "We have taken a decision (to help the discoms) to ensure that power cuts do not take place in the city. We discussed the issue with the Centre before taking the decision," Dikshit said.

The CM said to "ensure a level playing field", government would offer similar monetary help to the Tata-owned discom, NDPL, even though it has not sought any assistance. "We will not help only one company. We will give assistance to all discoms," she said. The BJP was quick to slam the decision, saying tax-payers' money was being squandered away. The government had earlier refused to give a loan to the BSES companies as was first proposed. They were later coaxed to come up with another plan to salvage the situation after the discoms told DERC they were unable to raise Rs 1,020 crore as a pre-condition to getting a bank loan of Rs 5,100 crore.


Source- Times of India

 

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