A senior official said that KEB will securitise its receivables package which is valued at close to Rs 300 crore and has already started negotiations with financial institutions.

But one snag is that KEB has outstandings to the tune of more than Rs 2,000 crore with the Karnataka Power Corporation Ltd (KPCL), another state-run agency which generates the power which is distributed by KEB.

This apart the electricity board is also said to have dues with other vendors of equipment, which points to a greater debt burden. In the circumstances, KEB's effort at securitising a mere Rs 300 crore is considered negligible.

Another moot point is how the electricity board proposes to prioritise its debtor list and settle the dues from the amount accruing out of the securitisation package, given the huge outstandings ithas.

While the securitisation measure has been initiated, KEB is also said to have appointed Credit Rating and Information Services of India Ltd (CRISIL) to study its capacity for creating an escrow account to guarantee payments to private power projects in the state.

The only big power project Cogentrix being under arbitration, there is no immediate need for KEB to worry about escrowability, the official said.