Report of Indian Institute of Public Administration ... - Ministry of Power

Adjustments in
current liabilities
State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
Table: Adjustments in Current Liabilities
MSEB prerestructuring
10.20
Restructuring
adjustment
(Rs crore)
MSEB post-
restructuring
Power purchase dues 495 (495) -
CPSU bonds 1,018 (1018) -
Interest on CPSU
bonds
172 (172) -
CPA deductions 603 (603) -
Other adjustments 57 (57) -
Total adjustments (2345)
(i) The amount of Rs 495 crore pertains to power purchase dues of Dabhol Power
and is proposed to be retained and serviced by the Government of Maharashtra;
(ii) The CPSU bonds towards dues of MSEB and interest thereon will be retained
and serviced by the Government of Maharashtra;
(iii) Government of India had adjusted Central Plan Allocation (CPA) amount to the
extent of Rs 603 crore towards payables of MSEB to NTPC, NPC, Coal
companies, Railways, etc., Government of Maharashtra had earlier treated this
amount as a loan to MSEB. It is now proposed to be retained by Government of
Maharashtra.
The above adjustment of Rs 2,345 crore of current liabilities/short-term loans is
parked with MSEB Holding Company, till the time Government of Maharashtra takes
it over. The status of current liabilities of the four companies after the above
adjustments, is as under:
Table : Current Liabilities of Companies
Particulars MSEB MSPGCL MSETCL MSEDCL
(Rs crore)
MSEB (HC)
Current Liabilities 9,172* 1,591 629 4,607 2,345
* As on 5 June 2005-The date of Transfer Scheme
The above gives the broad outline of the restructuring process adopted by the
Government of Maharashtra and the financial support extended to the new companies.
The Transfer Scheme is, however, provisional and will be finalised by Government of
Maharashtra soon. Once the final scheme is approved and announced, the extent of