Bengal discom may seek govt guarantee for bank loans to meet expenses

West Bengal State Electricity Distribution Company (WBSEDCL) is likely to seek bank guarantee from the state to take fresh loans so that it can meet salary expenses for its 18,000-odd workers for May. We have no cash flow to pay salaries to our staff and pension to our pensioners. We will have to take loans from the bank for which we will have to approach the government for bank guarantee,” state power minister Shobhondeb Chattopadhyay said.

The discom’s income has fallen to such an extent that the company is struggling to meet its fixed as well as variable costs. A large part of the fixed cost comprises salaries and pensions, and that is generally met from bills realised.