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ALL INDIA INSTALLED CAPACITY

ALL INDIA INSTALLED CAPACITY

Tuesday, January 3, 2012

Delhi's Tata discom wants state aid


Tata Power Delhi Distribution (TPDD, earlier called North Delhi Power Ltd) has sought financial assistance from the city government to offset its operational losses. This comes on the heels of Reliance Infrastructure’s BSES getting fresh equity infusion of Rs 500 crore from the government.
In a letter to the city government, TPDD says it needs equity infusion of Rs 400-500 crore. Tata Power holds 51 per cent stake in the company, which distributes electricity to about 30 per cent of Delhi. The Delhi government holds the other 49 per cent. Two BSES companies distribute power to the other 70 per cent of the city. TPDD’s revenue gap was Rs 3,100 crore as on September, of which bank loans were Rs 2,400 crore, a company official said. The initial investment by Tata Power and the Delhi government in the company, in 2002, was Rs 368 crore.
On Tuesday, the government had informed the Delhi Electricity Regulatory Com-mission of its plan to infuse fresh equity of Rs 500 crore to BSES. The latter’s parent company, Reliance Infra-structure (R-Infra), would also infuse Rs 520 crore in BSES, to enable the latter to avail a loan of Rs 5,000 crore to pay dues towards generation companies, including NTPC. The Delhi government and R-Infra had infused a total of Rs 576 crore in 2002, when BSES’ two city distribution companies were formed.
R-Infra holds 51 per cent equity in the BSES discoms. BSES had said it was unable to pay its dues and NTPC had served a notice to it, threatening suspension of power supply. NTPC supplies a little over 2,000 Mw to BSES. It has since extended the deadline for payment to January 7. DERC had also, last month, sent notices to BSES, asking why its licence should not be suspended for failing to clear dues.
Delhi saw a revision of power rates, of 21 per cent, effective September 1; BSES and Tata had wanted a 50 per cent rise. It was earlier revised in 2009. Next month, DERC is to begin the process of revising rates for 2012-13.

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