Delhi Govt okays bailout of BSES | delhi | Hindustan Times
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Delhi Govt okays bailout of BSES

delhi Updated: Dec 28, 2011 01:41 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Coming to the rescue of cash-strapped power distribution company BSES, the Delhi government on Tuesday sent a letter to the Delhi Electricity Regulatory Commission (DERC), saying it will invest more money amounting to Rs 500 crore in the company.

"We've received a letter from the Delhi government, saying it will infuse (more money) in its share of equity in the firm. We have asked the BSES to get back to us with a liquidation plan acceptable to the creditors, only then we will decide on the future course of action," said a DERC official.

The discom has defaulted on payment of around Rs 3,000 crore to various power generating and transmission firms, which had threatened to snap supply to BRPL and BYPL, if their dues were not cleared on time.

"We welcome the decision of both promoters of BSES Delhi — RInfra and Delhi government — to infuse their respective share of promoters' equity into BRPL and BYPL. The commitment to contribute Rs 520 crore by

RInfra towards the equity has been followed up by the Delhi government's decision to infuse its 49% share (Rs 500 crore), thus ensuring that the equity structure of the companies remains undisturbed since their privatisation.

This contribution is nearly double the amount infused by both the promoters during privatisation in 2002. This has been done to ensure that residents of the Capital continue to enjoy quality power," said a BSES spokesperson.