Good news to power sector from banks
In a big relief, there is some good news from banks for the power sector, especially to companies which seek a loan recast.
A number of state electricity boards (SEBs) or distribution companies (discoms) which had taken short-term loans from banks for liquidity support have found themselves in no shape to repay as committed.
Currently, talks are on between the Uttar Haryana Bijli Vitaran Nigam and its lenders, and between its counterpart in Tamil Nadu and the latter’s banks.
“Restructuring proposals from Rajasthan and Punjab are expected to reach bankers in the January-March quarter,” said Subhalakshmi Panse, executive director, Vijaya Bank.
There are other state agencies which had taken short-term loans (which run for around a year) from banks to bridge their revenue gaps. With repayment due, discussions on restructuring these have begun or soon would. Good news, isn’t it?
