News Brief | February 2013
AP govt to restructure Rs 16K cr power sector debt
As part of the Union government initiated power sector reforms, transmission and distribution companies of Andhra Pradesh are gearing up to restructure the piled up debt of about Rs 16,000 crore. Hiralal Samariya, Chairman and Managing Director of Transmission Corporation of Andhra Pradesh (AP Transco) said that the Corporation is in the process of updating the financial reports. Once the process is completed, it will seek the Government's consent and file for the debt restructure process, he added. Samariya told the media on January 10 that according to the arrangement, half of the loan amount piled up on discoms (Rs 8,000 crore) will be taken over by the State Government and the rest will remain with the discoms. Of the Rs 8,000-crore loan taken over by the State, 25 per cent (Rs 2,000 crore) will come in as a Government of India grant.The rest of Rs 8,000 crore on books of Discoms will be restructured, the interest rates will be brought down from 12 per cent to 9 per cent.