TATA-backed discom asks govt for money

Citing liquidity crisis, Tata-backed power distribution company TPDDL has sought fresh equity infusion of Rs 245 crore from the Delhi government.

The company wants the aid on the lines of the financial assistance given to another discom BSES last year.

The Tata Power Delhi Distribution Ltd, in a letter to chief secretary P K Tripathi, asked the government to infuse the fresh equity to tide over straining financial position caused by “absence of a cost-reflective tariff” for the last few years.

The government has a 49 per cent share in TPDDL. “Fresh infusion of share capital has been necessitated due to straining of TPDDL’s liquidity position in the absence of cost-reflective tariffs for the last several years, leading to large accumulated and increasing revenue gap,” the company said in a statement.

The company said Tata Power will infuse Rs 255 crore in proportion to its 51 per cent share while the government’s contribution has been worked out at Rs 245 crore.

In December last year, the government had offered a bailout package to Reliance Infrastructure-backed discom BSES by infusing fresh equity of Rs 500 crore to the company.

TPDDL said banks have been shying away from offering any fresh debt financing. 

Private discoms have been demanding a substantial hike in tariff for the last few years, citing severe financial position. Power regulator DERC had increased the tariff in September last year by 22 per cent, but the companies were not satisfied.