Expect funds from UP & TN post SEB restructuring: PTC India

Deepak Amitabh, CMD, PTC India and PTC India Financial Services said the compnay is expecting fund flow from Uttar Pradesh (UP) and Tamil Nadu (TN) state electricty boards (SEBs) only post their restructuring. Realisations from rest of the places except UP and TN were on time, he added.

Talking about margins in an interview to CNBC-TV18, he said over the short-term their average margin realistaions has settled down to 4 paise per kilowatt-hour (Kwh).
 
Below is the verbatim transcript of his interview on CNBC-TV18 Q: Both your trading margins and blended realisations were better than expectations. Could you give us some colour on the figures and the reasons why you did well? A: Realisations have improved during this quarter. Other than Tamil Nadu and Uttar Pradesh, from rest of the places the realisations have been totally on time. Our working cycle has settled down if we take out Tamil Nadu and Uttar Pradesh to three days. Talking about margins, as we had always stated our portfolio is going to change over couple of years to a larger portion coming from long-term, where margins will be much higher and stable.  In short-term we are seeing it settling down about 4 paise per kilowatt-hour (Kwh) is the average margin realisation. If we get more and more long-term, this base will keep going up. According to the power purchase agreement (PPA), which we had signed in the beginning initially we will get 5 paise per Kwh and later on 10 paise per Kwh after the debt servicing period. Q: You said barring UP and Tamil Nadu, the others are doing well but they are also very key debtors. What is the exact quantum of receivables due from these two companies? When do you expect the payments? Especially for these two, but for all State Electricity Boards (SEBs), has there been any improvement in the pace of repayment after some tariff hikes, which some SEBs took? A: Uttar Pradesh and Tamil Nadu are going for restructuring. So, as and when the complete restructuring will take place, everything should be cleared by that time. However, in Tamil Nadu at one point of time during the year our receivables were as high as Rs 800 crore, which has significantly come down to about Rs 370-380 crore and hope that during this financial year some more portion from Tamil Nadu should flow. From Uttar Pradesh as well, the tariff increase which happened in September-October, was only on the industrial and commercial tariff. Some of the financial institutions have given in-principle sanction of the loans but they have asked UP to file the tariff revision petition for the next financial year before they consider further disbursement. Also read: What is way forward for power discoms? Experts discuss Depending upon when file for the next year tariff, some money will start flowing from Uttar Pradesh as well. If it is done before March then we hope to get some money out of that. However, the bulk will be linked to the restructuring package, which is an ongoing process. Central government today has given time till March 31, but depending upon the progress during the quarter they may give some extension also. Q: From December 2012 you are going to also handle Lanco’s Amarkantak power supply to the state of Madhya Pradesh. What are you expecting by way of revenues? A: The upside is only on the margin because the flow of power has started from December 3. It is about 300 megawatt (MW), which is continuously flowing to Madhya Pradesh. There in the initial debt servicing period, the margin is 5 paise per Kwh and after the debt servicing period it will go up to 10 paise per Kwh. So, there will be some movement because earlier we were selling power either through exchanges or through short-term trade where the margins were 4 paise or less. So, there will be improvement to that extent during January to March quarter regarding sale from Lanco one.