Govt to ask power utilities to sell land or carbon credits to raise funds
The government plans to ask state power utilities to sell surplus land or carbon credits to raise funds and be eligible for the Rs 1.9 lakh crore debt restructuring package, in which state governments will take over half the short-term debts of distribution companies.
The proposal will be another shot in the arm for power firms. Already, states have raised power tariffs and the government is working out a price-pooling mechanism for domestic and imported coal to address fuel scarcity in the sector.
A senior power ministry official said sale of land and carbon credits may be required for some distribution companies as banks are not willing to provide loans to fund cash losses of distribution firms.