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Aiming to strengthen the electricity distribution network in two Eastern States, the Power Ministry will seek special permission from the Cabinet Committee on Economic Affairs (CCEA) to allow Bihar and Jharkhand adopt the financial re-structuring programme for their discoms.
These two States were not eligible for the scheme announced by the Centre, as they were not ready with their financial statements, and the cut off date for the scheme was March 31, 2012.
Bihar separated (de-bundled) the accounts of its generation, transmission and distribution business by late 2012, while Jharkhand couldn’t go-ahead because of a Supreme Court stay, which is vacated now.
On September 24, 2012, the Government approved the scheme for financial restructuring of State distribution companies (discoms) that was open for subscription till July 31.
The Power Ministry would approach CCEA with the proposal for these two States shortly, Power Secretary Pradeep Kumar Sinha told Business Line .
The re-structuring principles would remain the same, as earlier notified by the Centre, Sinha explained.
Bihar wants to rejig Rs 2,869 crore of bad debts in the books of two electricity distribution companies, said Sandeep Poundrik, Secretary (Energy Department) of Bihar.
The Bihar Government has already given its approval for the discoms to take up the financial restructuring programme. The exercise would be implemented as soon the Centre gives its approval, Poundrik told Business Line .
Canara Bank is the lead banker for Bihar state electricity boards. In November 2012, the State un-bundled its electricity distribution into two utilities — South Bihar Power Distribution Company and North Bihar Power Distribution Company.
In the case of Jharkhand, the losses admissible for re-structuring stands at Rs 3,950 crore, said Vimal Kirti Singh, Principal Secretary (Energy) of Government of Jharkhand.
These are dues payable to generation companies, he told Business Line . There are pending bills of nearly Rs 2,300 crore to Damodar Valley Corporation and another Rs 1,600 crore to Tenughat Vidyut Nigam Ltd.
Jharkhand Chief Minister Hemant Soren, who recently formed the Government in the State after nearly six months of President’s rule, is yet to appoint a Minister for Energy.
The re-structuring of discoms’ losses in Jharkhand is set to take off as soon as the Minister takes charge and the Centre gave its permission. The State has one electricity distribution utility.
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