IL&FS power arm’s Rs 5,500 crore debt to be restructured by Sept-end

The restructuring of over Rs 5,500 crore loan of ITPCL, the power arm of Infrastructure Leasing and Financial Services (IL&FS) Group in Cuddalore, Tamil Nadu is expected to be completed by September-end, as the company sees the recovery of over Rs 2,000 crore receivables from the state discom to happen during the period.

Since the Tamil Nadu discom has exhausted its borrowing limit as per the FRBM Act, it cannot borrow from the first tranche of Rs 90,000 crore funds approved by the central government through PFC and REC.