Hyderabad: TS and AP power distribution companies are in a high risk cluster of debt and need to be bailed out by the state governments, according to the credit rating agency Crisil.
Crisil’s report ‘Current Worries’ released on Tuesday rates discoms in 10 states as facing high risk due to the yawning gap/unit and average technical and commercial losses.
It said the discoms of eight of these states – the erstwhile AP (including Telangana). Bihar, Haryana, Jharkhand, Rajasthan, Tamil Nadu and Uttar Pradesh —- were restructured under the financial restructuring programme. These states constituted 70 per cent of the total discom borrowings as on March 31, 2013.
The agency has suggested among others that the governments must ensure that discoms eliminate the gap between average cost of supply and average revenue realised and go for cost-reflective tariff hikes.
Crisil said power projects nationwide with a collective capacity of 46,000 MW were facing viability issues due to lack of long-term buyers, inadequate fuel supply, and aggressive bidding to win projects and coal blocks.
