BSES to Get Rs 5100 Crore Loan From IDBI Bank

The financial health of the ailing BSES power distribution companies is all set to improve with the facilitation of Rs 5,100 crore loan from IDBI bank. The loan sanctioning formalities have been completed between the parties and the discoms just have to be awarded the formal sanctioning letter from the bank.

The development comes after Reliance Infrastructure (R-Infra), one of the promoters of BSES distribution companies, finally transferred its 51 per cent share (Rs520 crore) into the accounts of BSES power distribution companies on January 16. According to the conditions set by IDBI, the promoters of the two discoms (R-Infra and Delhi Government) had to furnish 20 per cent of the total amount as security deposit.

The two BSES discoms distribute power to 70 per cent households in Delhi. The Delhi Government being one of the promoters of the two discoms, had earlier announced to infuse its 49 per cent stake, Rs 500 crore as equity deposit in the two discoms. The infusion of equity by the two promoters will ensure that the equity structure of the companies remains the same since the year 2002. With the move, BSES consumers, who were perpetually under the threat of a blackout situation, can finally heave a sigh of relief.

The loan situation arose as the two discoms, BSES Rajdhani Private Limited (BRPL) and BSES Yamuna Private Limited (BYPL) together owe Rs7,000 crore to various generation and transmission companies. A BSES spokesperson said, “Completion of the loan process will help arrange long-term debt to finance the cash-flow mismatch and enable BSES Delhi to facilitate its payments to the generation and transmission companies.”