Delhi government to bail out BSES discoms
27 Dec 2011
Christmas cheer was a day late in coming for the Reliance Infrastructure-backed private discoms BSES Yamuna and BSES Rajdhani, as the Delhi government agreed to bail them out of their financial mess yesterday.
The discoms would get fresh equity of around Rs500 crore with the decision to the effect taken yesterday at a cabinet meeting chaired by Delhi chief minister Sheila Dikshit.
According to Dikshit, the decision had been taken to ensure there were no power cuts in the city which was decided following extensive deliberation with the centre.
She added that the state government would also provide financial assistance to the Tata backed NDPL, though the company had not demanded a bailout package yet.
BSES is in arrears of payments to the tune of around Rs3,000 crore to various power generation and transmission firms. The discoms have been warned by NTPC that their power supply would be cut if they failed to clear the dues by 7 January.
Following this, the Delhi Electricity Regulatory Commission (DERC) which slapped notices on the BSES, asked why its licences should not be suspended.