BJP slams govt for discom bailout, seeks PM's intervention | delhi | Hindustan Times
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BJP slams govt for discom bailout, seeks PM's intervention

BJP today slammed Delhi government for offering bailout package to private power distribution companies and sought Prime Minister Manmohan Singh's intervention in ordering a CAG scrutiny into their accounts.

delhi Updated: Feb 21, 2013 20:22 IST

BJP on Thursday slammed Delhi government for offering bailout package to private power distribution companies and sought Prime Minister Manmohan Singh's intervention in ordering a CAG scrutiny into their accounts.

The Delhi government on Wednesday had decided to infuse fresh equity of Rs 245 crore into Tata Power Delhi Distribution Ltd (TPDDL) to help it tide over financial crisis. Delhi government has 49% share in TPDDL.

"The private power distribution companies have been looting people. The government has been offering bailout packages to these companies succumbing to their black-mailing. We condemn the government decision," senior BJP leader VK Malhotra said.

Over a year ago, Delhi government had offered a similar bailout package to Reliance Infrastructure-backed discom BSES by infusing fresh equity of Rs 500 crore to the company. Reliance had infused Rs 520 crore and the total amount of Rs 1,020 crore was used for getting a loan of Rs 5,000 crore from IDBI bank.

"We request the Prime Minister to immediately order a CAG audit of all the accounts of the distribution companies since start of their operation in Delhi," said Malhotra.

The Delhi Government has also granted a financial assistance of Rs 200 crore to Pragati Power Corporation Ltd and Rs 100 crore to Indraprastha Power Generation Co Ltd as both these state-run power generation companies have been going through severe financial crisis due to non-payment of dues by BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd.

The two discoms together have not paid outstanding dues to the tune of Rs 2,000 crore.

Malhotra also accused the Delhi Government of siding with private discoms and said the Sheila Dikshit-led dispensation has given "freehand" to the companies to "loot the public of Delhi."