The State government has given guarantee to the power distribution companies to raise ₹ 1,000 crore in the form of loans or bonds for meeting their immediate financial requirements with regard to power purchases.
Senior officials said the guarantee was necessitated as the Discoms had been purchasing power at high rates from the market to ensure that there was no interruption in supply to different sections, especially the farm sector. “The government is firm that reliable supply is maintained for the agriculture sector and there should not be any interruptions,” a senior official told The Hindu. The Discoms have accordingly been permitted to raise the finances either in the form of bonds or opt for loans. “It is left for the Discoms to take a call. There is also no hurry in finalising their course,” the official said.
Officials, however, ruled out reports that there was paucity of funds for payment of salaries/wages to the staff and hence, the permission to raise the loan. The series of holidays to banks preceded by their two-day strike on March 28 and 29 were the reasons behind delay in release of the amount required for salaries/wages. Payment of pensions and wages to close to 25,000 workers/artisans was made on April 1 itself. Payment of salaries for all sections of employees had been completed by the end of last week, officials said.
