Loss-making discoms to be denied loans
We have already liberalised the Electricity Act and it provides for franchisees. However, the charging station is not selling electricity, but giving you a service. It is actually buying the electricity from a discom.
Waning hope for UDAY!
Although state discoms have managed to leverage UDAY by paring financial losses from Rs.51,589.51 crore in FY16 to Rs.34,826.87 in FY17, a marginal decrease in AT&C losses seems to be the bone of contention, as what has been envisaged has not been achieved yet, barring bailing-out non-performers.
Tamil Nadu's 40,000 crore plan to replace thermal units
Tangedco is set to replace all old thermal units in the state with new super critical units at an estimated 40,000 crore. The new thermal units, which will have a combined capacity of 5,700MW, will come up in the next five years. Several state-owned thermal units are working beyond their prescribed life of 25 years.
Govt orders probe into 400-MW SMHPC project
The government has ordered an enquiry into ´operation and mismanagement´ of Shree Maheshwar Hydel Power Corp (SMHPC) even as promoter Mukul Kasliwal and main lender Power Finance Corp trade charges of serious lapses that delayed and derailed the country´s first private hydropower venture.
The Cash Crunch
Public sector banks in India are staring at humongous piles of bad debts, delinquent loans are rising unabated. Ballooning bad debts have caused 10 Indian state-owned banks to report losses of a whopping Rs.153 billion for the March, 2016 quarter. India Ratings, a Fitch associate, estimates that 21 per cent of the total bank credit is stressed.
Rajeev Sharma has been appointed as Chairman and Managing Director (CMD) of Power Finance Corporation (PFC), a Navratna Public Sector Undertaking. Sharma is presently CMD of Rural Electrification Corporation Ltd.
Tantra N. Thakur, former CMD of PTC India Ltd. and PTC India Financial Services Ltd. and David B. Sandalow, the Inaugural Fellow at Columbia University´s Center on Global Energy Policy, joined ReNew Power Board of Directors.
Loans in jeopardy!
As much as Rs 75,000 crore of loans - or nearly 15 per cent of the aggregated debt to power generation companies - are at risk of becoming delinquent in the medium-term.