Reliance Infrastructure on Monday said it has infused Rs 520 crore into BSES power distribution companies in Delhi as part of Rs 5,100-crore package being worked out by IDBI-led consortium to resolve cash flow issues.
The package requires promoters to bring in 20 per cent equity (or Rs 1,020 crore), Reliance Infrastructure, said in a statement. R-Infra has has 51 per cent stake in BSES.
In Delhi, BSES operates through two companies – BSES Yamuna Power Ltd (BYPL) and BSES Rajdhani Power Ltd (BRPL).
The statement added that the Delhi government, which holds rest 49 per cent stake in the BSES companies, would infuse its share of Rs 500 crore.
It further said the capital infusion by promoters will ensure that the equity structure of the companies remains the same since as 2002 when the power distribution was privatized in Delhi.
The need to infuse fresh capital emerged due to cash crunch as power is being sold at a loss of nearly Rs 2 per unit in Delhi by the three power distribution companies - BYPL, BRPL and Tata Power's North Delhi Power Limited (NDPL).
Accordingly, BSES had approached IDBI-led consortium of bankers to tide over the crisis.
"Discussions with IDBI are at an advanced stage and are expected to conclude soon. Completion of this process will help arrange long-term debt to finance the cash flow mis-match and enable BSES Delhi to facilitate its payments to the generation and transmission companies," the statement said.
Over last nine years, the power purchase cost for Delhi Discoms has increased by 280 per cent whereas during the same time, the consumer tariff has only increased by 36 per cent, Reliance Infrastructure CEO Lalit Jalan said in the statement.
"Due to this huge discrepancy between the cost increases and revenue, there is a current revenue deficit of nearly Rs 2 per unit, resulting in under-recoveries of Rs 20 crore per day for the three Delhi Discoms," he added.
The last revision in Delhi power tariffs were done in August, 2011, when it had increased by about 22 per cent.
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