New Delhi: Delhi Government on Monday decided to extend financial assistance to Reliance Infrastructure-backed discom BSES which has defaulted on payment of around Rs 3,000 crore to various power generating and transmission firms.
The decision to offer the help to the beleaguered company was taken at a Cabinet meeting presided over by Chief Minister Sheila Dikshit.
Dikshit, however, did not give details about the financial assistance but officials said government is likely to infuse fresh equity to the tune of around Rs 500 crore into the company on the condition that the discom would also infuse the same amount. Delhi government holds 49 percent share in BSES.
The Chief Minister had apprised Prime Minister Manmohan Singh, Finance Minister Pranab Mukherjee and Union Power Minister Sushil Kumar Shinde about the looming crisis facing the city arising out of BSES failure to pay the dues to the transmission and generation companies.
"We have taken a decision (to help the discom) to ensure that power cut does not take place in the city. We had discussed the issue with the Centre before taking the decision," Dikshit said without elaborating.
The NTPC has threatened to cut supply of 2,000 MW of power to BSES if it fails to pay the dues by January 7. If NTPC stops supply of power to BSES, then it may lead to a blackout in 70 percent of the areas in Delhi.
The Delhi government would inform power regulator DERC about its decision to help the cash-strapped discom tomorrow following which the regulator will issue a formal order for resolving the crisis.