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A Loan for a Loan : Is This the Way Out for Discom's ?

News

With the state-owned power generation, transmission and distribution companies together reeling under a massive debt burden of over INR 45,000 crore, the Maharashtra government is looking at restructuring and refinancing these borrowings to lower the burden on consumers. 
Source: DNA

SNP Insight

Refininacing debt of INR 45685 crore with interest payouts of around INR 5524 crores per year with soft loan may only decrease the tariff for the consumer for a shorter period of time. A loan to service a loan will only reduce the cost of debt but improving revenue to pay off the debt with interest is a major concern for the utilities that might be tuned by timely revision of the tariff for the discom.
Source: SNP Infra Research