Delhi govt to bail out power discom
Coming to the rescue of cash-strapped power distribution companies, the Delhi government on Monday said that it will provide financial assistance to BSES.delhi Updated: Dec 26, 2011 23:46 IST
Coming to the rescue of cash-strapped power distribution companies, the Delhi government on Monday said that it will provide financial assistance to BSES.
The discom has defaulted on payments of around R3,000 crore to various power generating and transmission firms, who had threatened to snap power supply to BSES Rajdhani Power Limited and BSES Yamuna Power Limited.
A decision in this regard was taken at a Cabinet meeting presided over by chief minister Sheila Dikshit. She, however, did not give details about this financial assistance.
According to officials, the government is likely to infuse fresh equity to the tune of around Rs500 crore on the condition that the discoms also infuse the same amount.
“We have taken a decision to help them out so that power cuts do not take place in the city. We had discussed the issue with the Centre,” said Dikshit.
The NTPC had threatened to cut 2,000 MW of power supply to BSES if it fails to pay the dues by January 7 — which will affect 70 per cent of Delhi areas.
The opposition has come down heavily on the Delhi government. “The taxpayers’ money should not be doled out to private companies,” said VK Malhotra, leader of opposition in the Delhi assembly.