The Tata Power Delhi Distribution Limited, in a letter to Chief Secretary P K Tripathi, asked Delhi government to infuse the fresh equity to tide over the straining financial position caused by "absence of a cost-reflective tariff" for last few years. Delhi Government has 49 per cent share in Tata Power Delhi Distribution Limited.
"Fresh infusion of share capital has been necessitated due to straining of TPDDL's liquidity position in the absence of cost-reflective tariffs in the past many year leading to large accumulated and increasing revenue gap," the company said in a statement.
The company said Tata Power will infuse Rs 255 crore in proportion to its 51 per cent share while Delhi government's contribution has been worked out at Rs 245 crore.
In December last year, Delhi government had offered a bailout package to Reliance Infrastructure-backed discom BSES by infusing fresh equity of Rs 500 crore to the company. Reliance had infused Rs 520 crore and the total amount of Rs 1,020 crore was used for getting a loan of Rs 5,000 crore from IDBI bank.
The TPDDL said the banks have been shying away from offering any fresh debt financing to the company due to the "adverse debt-equity ratio and general market sentiments."
The private power distribution companies have been demanding a substantial hike in tariff for last few years citing severe financial position. Power regulator DERC had increased the tariff in September last year by 22 per cent but the companies were not satisfied by the increase.
The regulator is now in the process of finalising the tariff for 2012-13.
