Chandigarh: Haryana government will take over 50 percent of short-term liabilities of power utilities which would be converted into bonds to be issued to lenders, as part of debt restructuring plan for discoms, a senior official of Haryana Power Utilities said on Wednesday.

"The department of Financial Services of Union Finance Ministry has made it clear that any debt even it was restructured before March 31, 2012, raised for short-term and working capital requirements of power distribution companies, will be eligible for debt restructuring by the state," the official said.

A committee constituted by Haryana Finance Department had assessed the state-owned power distribution companies' liabilities at Rs 6,000-7000 crore against Rs 19,000 crore calculated by discoms for debt restructuring as part of Centre's bailout package for power distribution companies.

The Finance department had reasoned that discoms had already got short term liabilities amounting to Rs 9,000-10,000 crore restructured and hence "such restructured debt" could not qualify for restructuring.

Thereafter, the matter was taken up by department of Financial Services to sort out the issue, he said. "Now, Haryana Finance department has to take approval from the state Cabinet in this regard," he added.

Under the financial restructuring programme, Haryana power discoms had sought from the state government to take over 50 percent of 19,000 crore of short term liabilities of power utilities as per bailout package announced by Centre for power distribution companies in the September last.

As per the plan, state government will takeover 50 percent of short term liabilities of power utilities and they would be converted into bonds to be issued to lenders, backed by state government guarantees.
The rest of liabilities would be rescheduled and moratorium would be given on payment of principal amount under the scheme. Haryana government has already given in principle approval to Centre's financial restructuring plan for power distribution companies.
Haryana power utilities are eyeing to turnaround in next 3 years once the state government take over its 50 percent of its liabilities.


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