The Department of Financial Services has appointed nodal banks for preparing financial restructuring plans to tackle the debt of electricity boards of 10 states.
“The coordinating banks have been appointed for seven states which were part of the restructuring plan already announced by the Centre and also three other states which had shown willingness to join the scheme,” said a senior government official associated with the process.
Central Bank of India, Punjab National Bank (PNB) and Bank of Baroda will assist Rajasthan in preparing the financial restructuring plan (FRP). Canara Bank and Oriental Bank of Commerce will be the nodal banks for Haryana and PNB will assist Uttar Pradesh.
Canara Bank would also be the nodal bank for Punjab and Karnataka. Punjab, though, had expressed unwillingness to take part in the state electricity board (SEB) restructuring plan, said the official.
While State Bank of India will assist Tamil Nadu in concretising the FRP, Syndicate Bank will help Andhra Pradesh prepare the plan, which would be central to the debt restructuring exercise.
Other states that have given their nods are Jharkhand, Himachal Pradesh and Kerala.
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Allahabad Bank will be the nodal bank for Jharkhand, UCO Bank for Himachal Pradesh and Canara Bank for Kerala.
The official said these banks were the main lenders to the SEBs in the respective states.
The work for preparing FRPs had already started in the seven states for which the restructuring plan has already been announced, he added.