Tata Power asks govt for equity infusion

After BSES, Tata Power Delhi Distribution Limited (TPDDL) has also written to its shareholders — the Delhi government and Tata Power — for equity infusion to the tune of Rs 245 crore. HT reports.

After BSES, Tata Power Delhi Distribution Limited (TPDDL) has also written to its shareholders — the Delhi government and Tata Power — for equity infusion to the tune of Rs 245 crore.

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According to the TPDDL spokesperson, fresh infusion of share capital has been necessitated due to straining of TPDDL’s liquidity position in the absence of cost-reflective tariffs in the past many years, leading to large accumulated and increasing revenue gap.

“Financial institutions and banks are shying away from offering any fresh debt financing, owing to the adverse debt-equity ratio and general market sentiments,” said the spokesperson.