Mumbai, April 3: The state-run National Thermal Power Corporation (NTPC) is holding talks with the Maharashtra State Electricity Board (MSEB) for issue of government guaranteed transferable bonds to liquidate the total outstanding dues of Rs 421 crore at the end of 2000-01.NTPC sources told The Financial Express that its team would hold a crucial meeting with the MSEB Chairman Vinay Bansal on April 15, to arrive at an agreement on this issue.According to NTPC, MSEB would have to issue a letter of allotment for Rs 421 crore bonds, guaranteed by the state government with a coupon rate ranging between 11 per cent and 13 per cent.Repayment of these bonds would be at the end of the 6th, 7th and 8th year in the ratio of 30:30:40.MSEB draws nearly 1,000 million units (MUs) costing in between Rs 120 crore and Rs 130 crore from the NTPC. MSEB is also entitled to pay Rs 230 crore to the NTPC, on account of surcharge in addition to arrears of Rs 421 crore for 2000-01. NTPC sources said that it has already reached a one time settlement with the Gujarat Electricity Board (GEB) for liquidation of all outstanding dues of Rs 380 crore and surcharge of Rs 195 crore.
The GEB has issued a letter of allotment for Rs 380 crore bonds guaranteed by the state government under section 66 of the Electricity (Supply) Act, 1948 for repayment of principal and interest thereon.The GEB, which is entitled to pay a coupon rate of 11 per cent per annum, would also pay the guarantee fee of 1 per cent per annum to the Gujarat government.
GEB would create the sinking fund in consultation with the state government, to meet the liabilities arising out of redemption and interest payment to the bonds in future.Furthermore, NTPC said that it has arrived at an agreement with the Madhya Pradesh Electricity Board (MPEB), for issue of bonds for Rs 400 crore. These bonds would be secured by guarantee from the Madhya Pradesh government.NTPC sources said that these bonds would be issued shortly by MPEB. These sources added that MPEB owes a whopping Rs 1,058 crore for 2000-01 towards power purchase and in addition to this Rs 370 crore towards discharge.
MPEB draws nearly 1,200 Mus of power, costing between Rs 150 crore and Rs 260 crore per month.According to NTPC, against the billing of Rs 578.68 crore for the sale of power to the MPEB, its realisation was Rs 450 crore during October-December 2000. The shortfall of Rs 128.68 crore, was mainly due to drought conditions. Payment during that period restricted to letter of credit limit of Rs 150 crore. During January to March 2001, NTPC's billing to MPEB was of Rs 662.11 crore against the realisation of Rs 230 crore. The shortfall was of Rs 432.11 crore.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
