End game

Moily says that for states that cannot come up with a practical financial restructuring plan for its SEBs, the bailout packages will not be available

The Centre’s deadline for seven states to come up with practical financial restructuring proposals to match its bailout package for state electricity boards (SEBs) is December 31, 2012. Asked what will happen if the states were unable to keep the deadline, Union Power Minister Veerappa Moily’s sardonic reply was, “There is a prophecy that says the world will come to an end on December 21, 2012.” Clearly, the incentive, under which the Centre will pick up half the tab for SEBs’ bad debts, will not be available for states that cannot meet the deadline.