SEB losses pegged at Rs 2.46 lakh cr: Veerappa Moily

A day after the government cleared the Rs 2 lakh core debt restructuring proposal for state electricity boards, Power Minister Veerappa Moily said SEBs had run up losses of Rs 2,46,000 crore between FY08 and FY12. "Non-payment of subsidies, high purchase costs are leading to loss. We have tried to move towards performance-linked incentives," he added.

Explaining that steps were taken as banks had stopped lending to SEBs, he said, "State governments shall convert all SEB loans into equity."

Moily admitted that the attempt to make power distribution companies (discoms) debt-free in 2001 failed.

States, he pointed out, will notify revised power tariff by March 31 each year. “They will have to implement legislation within a year. We don't want it to see the same fate as 2001 discom restructuring plan,” he stressed.

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