By Bizodisha Bureau, Bhubaneswar, August 25, 2015 : The four power distribution companies (Discoms), owe Rs 2126.32 crore to the state government, energy minister Pranab Prakash Das told the State Assembly.

Replying to a question of BJP MLA Dilip Ray, the minister said four Discoms – Cesu, Wesco, Nesco and Southco had availed loans from the state government under World Bank, Accelerated Power Development and Restructuring Programme [APDRP] and Capital Expenditure [CAPEX] schemes. Cesu owes Rs 1232.56 crore inclusive of interest, while Wesco, Nesco and Southco owe Rs 323.96 crore, Rs 327.24 crore and Rs 242.54 crore respectively.

While Wesco, Nesco and Southco have paid back Rs 122 crore World Bank loan, the Cesu has not been paying. None of the companies are paying a single paise toward the loan they have taken under APRDP and CAPEX, Das added.

Early this year, the license of the Reliance managed Wesco, Nesco and Southco for distribution of power in the state was revoked by the Odisha Electricity Regulatory Commission (OERC).

The World Bank loan carries 13% interest. While APRDP loan bears 12% interest and the loan under CAPEX is interest free. As the Discoms are not paying back their installments, the loan amount has gone up sharply, the minister informed the House.

With the Discoms failing to bring in investment on infrastructure to beef up transmission and distribution of power in the state, the state government came out with an Rs 2400 CAPEX plan in 2010-11. Under the scheme, the state government has been lending the Discoms through Grid Corporation of India [GRIDCO].

The loan amount could be written off and considered as grant, if the Discoms manage to bring down the ATC losses by 3% ever year going by terms and conditions for availing loan under CAPEX, the minister said.