Hyderabad: The Telangana government’s ambitious plans to set up big thermal power plants are facing financial hurdles as bankers are reportedly hesitant to lend money on the ground that earlier loans and interest are yet to be resolved.
Several institutions including the Power Finance Corporation (PFC) have sought documents including the balance sheets for the past three months, but the government could not submit them so far, informed sources said.
The government has explained the scenario to the bankers that it is pressing the Union government to address the issues of bifurcation and expects a solution in the next couple of months.
Till the issues are resolved it would stand guarantee, the government has assured.
However, the bankers are insisting on the balance sheets since they should be satisfied that the borrower should not have any dues, sources said.
PFC had assured a loan of Rs 300 crore in June this year, but the corporation is still awaiting the balance sheet, sources said. But they hastened to add that since the assurance has been made in the presence of the Chief Minister, the PFC will not back out.
Power utilities have not filed the half-yearly financial results of 2014-15. Moreover, the AP government has made it public that Telangana power utilities owe nearly Rs 1,500 crore in arrears in various forms.
The Telangana government is spending not less than Rs 600 to Rs 800 crore for purchasing power from various sources to overcome the shortage. The exact amount that is being spent for purchase of power so far (since bifurcation) was also not made public. This has also added to the doubts of financiers, it is said.
The government has made huge plans to generate at least 7,700 MW of thermal power including the Damarcharla mega power plant of 4,000 MW.
They now face financial block and the state government is now engaged in a persuasive dialogue with the bankers and PFC to get the loans sanctioned, sources said.
