<p>The Narendra Modi-led government has started the process of reworking the financial restructuring package for electricity distribution companies (discoms) to strengthen the debt-stricken firms.<br /><br /></p>.<p>Officials in the Ministry of Power recently held discussions with the Rajasthan government and discussions with other states are on. <br /><br />Though the previous UPA government implemented a debt restructuring plan, only seven states — Tamil Nadu, Rajasthan, Uttar Pradesh, Haryana, Jharkhand, Bihar and Himachal Pradesh — opted for it, while the rest did not respond, terming it was not attractive.<br /><br />As per the previous government’s scheme, 50 per cent of the accumulated debt of the discoms till March 2012 could be converted into bonds. <br /><br />These bonds would be issued to participating lenders, backed by state government guarantees. <br /><br />The remaining 50 per cent loan will be restructured by providing moratorium on principal and better repayment terms.<br /><br />Experts, however, said the previous government package was not attractive as it was a mere moratorium of loan repayments. <br /><br />The Ministry will come out with a new package, an official from the Ministry told Deccan Herald.<br /><br />Strengthening the discoms and reduce transmission and commercial losses are major issues to be discussed in the two-day state power ministers meeting at Guwahati from April 9. <br /><br />There is also a proposal before the government to ask central public sector undertakings like NTPC or NHPC to purchase stakes in state discoms to pump in money and introduce professionalism. <br /><br />The final plan, however, will be unveiled after taking states into confidence.</p>
<p>The Narendra Modi-led government has started the process of reworking the financial restructuring package for electricity distribution companies (discoms) to strengthen the debt-stricken firms.<br /><br /></p>.<p>Officials in the Ministry of Power recently held discussions with the Rajasthan government and discussions with other states are on. <br /><br />Though the previous UPA government implemented a debt restructuring plan, only seven states — Tamil Nadu, Rajasthan, Uttar Pradesh, Haryana, Jharkhand, Bihar and Himachal Pradesh — opted for it, while the rest did not respond, terming it was not attractive.<br /><br />As per the previous government’s scheme, 50 per cent of the accumulated debt of the discoms till March 2012 could be converted into bonds. <br /><br />These bonds would be issued to participating lenders, backed by state government guarantees. <br /><br />The remaining 50 per cent loan will be restructured by providing moratorium on principal and better repayment terms.<br /><br />Experts, however, said the previous government package was not attractive as it was a mere moratorium of loan repayments. <br /><br />The Ministry will come out with a new package, an official from the Ministry told Deccan Herald.<br /><br />Strengthening the discoms and reduce transmission and commercial losses are major issues to be discussed in the two-day state power ministers meeting at Guwahati from April 9. <br /><br />There is also a proposal before the government to ask central public sector undertakings like NTPC or NHPC to purchase stakes in state discoms to pump in money and introduce professionalism. <br /><br />The final plan, however, will be unveiled after taking states into confidence.</p>
