• PAGE ONE
• INDEX
• HOME

Securitisation of WBSEB dues cleared

Our Bureau

KOLKATA, Dec. 12

THE West Bengal Government has cleared the issue of securitisation of the dues of the West Bengal State Electricity Board (WBSEB).

WBSEB sources said that, following Cabinet clearance, the tripartite agreement between the Reserve Bank of India, the Union Power Ministry and the West Bengal Government is likely to be signed within a fortnight.

It may be mentioned that Mr Mrinal Banerjee, the State Power Minister, had agreed to securitise WBSEBs dues of the Central power utilities while participating at the conference of Power Ministers held in New Delhi on March 3, 2001.

The draft agreement has been drawn up in line with the Ahluwalia Committee recommendations in this regard, which means that 40 per cent of the interest that is accrued on account of the dues is waived.

For the WBSEB, which owes Rs 1,850 crore to the National Thermal Power Corporation, Power Grid Corporation of India Ltd, the Damodar Valley Corporation and the National Hydro Power Corporation, this translates into a Rs 45-crore waiver. However provision would have to be made for servicing the bonds which are to be issued. Sources said that the monthly liability is expected to be of the order of Rs 20 crore.

WBSEB spends around Rs 1,851 crore annually on power purchase to serve 30 lakh-odd consumers. It generates only around 3437 million units against a requirement of around 13,704 million units.