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Discoms sign MoU with Centre

Discoms sign MoU with Centre
Highlights

Hyderabad: Chief Minister K Chandrashekar Rao on Wednesday told the State Legislative Assembly that two State-owned power discoms have signed a MoU with the Centre to join Ujwal DISCOM Assurance Yojana (UDAY) scheme.

Hyderabad: Chief Minister K Chandrashekar Rao on Wednesday told the State Legislative Assembly that two State-owned power discoms have signed a MoU with the Centre to join Ujwal DISCOM Assurance Yojana (UDAY) scheme.

Making a statement in the House, KCR said the two discoms in the State were having a long-term debt of Rs 11,897 crore (TSSPDCL- Rs 7,392 crore and TSNPDCL - Rs 4,505 crore) as on September 30 last year and under the Uday Scheme, the State government was taking over 75 per cent of the Discoms debt amounting to Rs 8,923 crore.

"The balance loan amount of Rs 2,974 crore will be restructured by the discoms by issuing bonds with government Guarantee.

As a result of taking over the loan by the State government, there is a relief of interest burden of Rs 890 crore per annum to the two Discoms and consumers at large.

Discoms will be able to raise funds with competitive rates from the financial institutions towards capital expenditures. The government is already providing a subsidy of Rs 4,584 crore to the Discoms/Consumers,” he said.

Taking a dig at the previous government for the State of affairs in power sector, KCR said the installed capacity of the State was 5,863 MW as on June 2014 and his government initiated short, medium and long-term measures to overcome the power problem.

He hoped that with the completion of pending power projects, the total installed capacity of the State will be about 27,187 MW by 2019.

“By 2019, 27,187 mw power capacity will be there in our State.

Then the State will become self-sufficient in power sector.

Additional power generation will be there even after meeting all the necessities (domestic requirement),” he stated.

According to him, backed by better performance of Discoms, power finance companies such as Rural Electrification Corporation and Power Finance Corporation have reduced their lending rates to 9.95 per cent from 12 per cent benefiting Rs 200 crore interest per annum and overall Rs 2,000 crore in a loan period of ten years.

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