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Maharashtra government plans to retire high cost debt of three power companies

News:

  • The Maharashtra government is exploring the option of retiring the high-cost debt of Rs 54,000 crore of its three unbundled power firms(MahaVitaran,MahaGenco,Mahatransco) by raising loans at lower interest rate.
  • The government has held talks with Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural Development and SBI Caps to raise loans at 9-10 per cent.
  • MahaVitaran has a debt of Rs 16,000 crore, MahaGenco’s debt is Rs 22,000 crore and MahaTransco’s debt is Rs 9,000 crore.
  • The annual interest payment by the three companies is Rs 5,000 crore.
  • The government has roped in rating agency CARE to fix the ratings of the three power companies.

Source:BS

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