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.
At a meeting with the Delhi Electricity Regulatory Commission (DERC) and the government, more time was sought to study the proposal of R-Infra. The next meeting is scheduled for Tuesday.
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.
DERC had also sent notices to BSES on November 25 asking why its licences should not be cancelled because of its failure to pay the dues of power generating companies. It had set a deadline of on Thursday for the government to take a final call on the issue.
According to an agency report, in an earlier submission, the Delhi government had told DERC it would not give any financial assistance to BSES or bailout package.