The government plans to allocate Rs 2,000 crore to restructure and revive the five ailing electricity supply companies (Escoms) in the state. The state cabinet, which is scheduled to meet in Belagavi next week to discuss the anticonversion bill, is expected to sanction the proposal.
V Sunil Kumar, energy minister, said the proposal was discussed with chief minister Basavaraj Bommai and he has promised to add it to the agenda of the cabinet meeting.
The five electric supply companies — Bescom (Bengaluru), Chescom (Chamundeshwari), Gescom (Gulbarga), Mescom (Mangaluru) and Hescom (Hubballi) — have been in the red largely due to rising dues from the government. They had recently approached Bommai seeking clearance of dues to the tune of Rs 2,000 crore to ensure uninterrupted power supply.
“If the government had not intervened, then the Escoms would have struggled to survive and power supply efficiency would have turned from bad to worse,” said a cabinet minister.
Energy department officials said the government will make payment in two parts — grants and guarantees for Escoms to raise loans from the market. “We are looking at 60% capital infusion into the companies, with the government holding stakes, and the rest as a one-time grant,” said an official.
Another official said: “Since the government is unable to pay the dues, it will give a guarantee that none of the Escoms will default on their loans in the market. It will also give Escoms an opportunity to choose cheaper loans.”
If the move goes to plan, it will be historic of sorts as the government will hold a direct stake in Escoms, which have been running independently till now. The decision also comes in the wake of the government unable to repay huge pending bills towards Escoms for providing free power to farmers for their irrigation pumpsets. There are as many as 30.6 lakh irrigation pump sets which are being supplied with free power.
