Haryana government gives nod to discoms debt rejig

The Haryana government today decided to take over debt liabilities of Rs 8,162.09 crore of power utilities as part Centre’s bail out package for power distribution companies (discoms). The decision in this regard was taken by Haryana Cabinet, which met under the Chairmanship of Chief Minister Bhupinder Singh Hooda, here today while approving the proposal of the Finance Department for financial restructuring of power distribution utilities. The Cabinet also authorised the State Level Monitoring Committee to take up the matter with the Central Government and finalise the Financial Restructuring Plan with amendments, wherever required. Under the scheme, the state government will take over the liability of Rs 8162.09 crore of the two distribution power utilities — Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam — by directly issuing bonds or infusion of funds for amount of 50 per cent of the liabilities calculated by March 31, 2012. These liabilities will be taken over in next two to five years when the fiscal space so allows, as provided in the FRP, said an official release.

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