SEB loan recast: Moily says issues to be sorted out

Union Corporate Affairs and Power Minister Veerappa Moily on Monday said any issues pertaining to recent loan recast of the state distribution companies will be sorted out.

"Restructuring of debt of the discoms has come from the highest level. If there is any issue, we will intervene and sort it out," Moily told reporters on the sidelines of the FT-Yes Bank banking summit this evening.

In a breather to state distribution companies (discoms) reeling under severe losses and huge debts, the government last month approved a debt recast of Rs two lakh crore.

As part of the package, the respective states will take over 50 per cent of the short-term debt of discoms in the next two to five years and convert them into long-term bonds over a period of time.

However, there is confusion regarding whether the long-term bonds will be given SLR bond status, which can be held by the banks as part of the approved securities.

Referring to power sector in general, Moily said the government is hopeful of achieving 8 per cent growth in power sector in the 12th Plan.

"The government has undertaken a lot of reforms in the recent past, which will help the economy to come back to the growth trajectory," he said, adding coal supply has been improved in the past four months averaging around 96 per cent.

Referring to Companies Bill, he said it will come up in the Winter session of Parliament.