R-infra infuses Rs 520 crore in Delhi’s BSES business
Reliance Infrastructure Limited has infused Rs 520 crore equity into BSES Delhi distribution companies as part of Rs 5,100 crore financial package being worked by IDBI bank. The package required the promoters to bring in 20 per cent equity or Rs 1,020 crore. It is to be noted that Delhi government will infuse another Rs 500 crore into the distribution companies. Discussions with IDBI bank are at an advanced stage and are expected to conclude soon. Completion of this process will help arrange long-term debt to finance the cash-flow mismatch and enable BSES Delhi to facilitate its payments to generation and transmission companies, it said. According to Reliance Infrastructure CEO, Mr. Lalit Jalan, efforts were being made to ensure quick payments to generation and transmission companies. “Over last 9 years, the power purchase cost for Delhi discoms has increased by 280 per cent whereas during the same time, the consumer tariff has only increased by 36 per cent. Due to this huge discrepancy between cost increases and revenue, there is a current revenue deficit of nearly Rs 2 per unit, resulting in under-recoveries of Rs 20 crores per day for the three Delhi discoms,” Mr. Jalan reportedly said.