R-Infra plans Rs 500- cr fresh equity for BSES

Reliance Infrastructure Ltd. | Power Generation/Distribution | Power | BSE: 500390 | NSE: RELINFRA

23 Dec 2011 Evaluate

Reliance Infrastructure (R-Infra) has proposed to infuse equity of Rs 500 crore into its distribution arm, BSES, to help it raise funds to pay dues of Rs 3,000 crore.The pressing problem was for the city of Delhi, where BSES supplies 70 per cent of consumers. NTPC had threatened to cut supply to BSES in the capital, for non-payment of dues. According to people close to the development, R-Infra told the Delhi government it was ready to infuse the equity and requested the government to put in an equal amount to enable BSES avail a loan of Rs 5,000 crore. It is learnt BSES had approached IDBI Bank and Power Finance Corporation for the loan.

Meanwhile, following the intervention of the government, state-run power producer NTPC has extended the deadline by a month, till January 7, for BSES to pay its dues. BSES Yamuna and BSES Rajdhani account for 70 per cent of the power distribution in Delhi. NTPC, which supplies 2,000 Mw to these companies, had earlier sent notices to these firms, threatening to suspend power supply over non-clearance of dues. But after a partial payment and a written assurance, NTPC had recalled the notices.