Tamil Nadu belled the cat with the State Electricity Board (SEB) hiking power tariff. This is the first time in over nine years that tariff is being increased. This 37% hike comes as a harbinger of hope for the power finance companies such as PTC, REC and PFC that hopes to get timely payments from the SEB henceforth.
CNBC-TV18 caught up with HD Khunteta, director of finance, REC; Harshvardhan Dole, power analyst at IIFL and SK Tuteja of the Shunglu Committee for a discussion on the matter.
The Tamil Nadu SEB owes nearly Rs 9000 crore to REC, while AP and Rajasthan together owe the company Rs 14000 crore. Khunteta expects the other states to follow suit TN with tariff hikes, which he says will improve business for the power finance companies.