Delhi: Cabinet approves for investment of 200cr as loan to PPCL

New Delhi: Delhi Cabinet approved a proposal for infusion of Redeemable Cumulative Preference Shares in Tata Power Delhi Distribution Power Ltd. (TPDDL) and additional investment in loans to Pragati Power Corporation Ltd. (PPCL) and Indraprasth Power Generation Co. Ltd. (IPGCL). The decisions were taken at a Cabinet meeting chaired by the Chief Minister Smt. Sheila Dikshit.

While briefing the media after the Cabinet, Smt. Dikshit stated that keeping in view the principle of parity and equality among the DISCOMs, it has been decided to infuse 49% of ` 500 cr of share capital for “Redeemable Cumulative Preferential Shares” i.e. ` 245 cr so as to enable the TPDDL for liquidation and part funding the revenue gap which was recognized by DERC. The Cabinet vide its decision dated 26th December, 2011 has agreed for infusion of additional equity so that BSES will be able to raise the loan from market. The Cabinet took note of the fact that the TPDDL has been successful in bringing down AT&C losses from 41.1% to 11% in 10 years since privatization and its satisfaction level is also much better than other two DISCOMs.

Dikshit also stated that the Cabinet has approved the investment of loan to the PPCL to the tune of ` 200 cr and ` 100 cr to IPGCL. The city government owing to its commitment to ensure 24x7 power supply to citizens of Delhi has decided to approve the above investment plan.