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November 21, 2011

RBI blacklists TNEB,claims state govt…

According to reports, the Tamil Nadu government on Thursday claimed that the Reserve Bank of India (RBI) has blacklisted the state’s electricity board, but banks here said they had not received any communication from the central bank that barred them from lending further loans to Tamil Nadu Electricity Board (TNEB).

Earlier, while announcing her Cabinet’s decisions, state Chief Minister J Jayalalithaa said the debt-ridden TNEB should not expect any help from the banks since the RBI had issued them an order blocking financial aid to the board.

The All India Anna Dravida Munnetra Kazhagam (AIADMK) supremo blamed the erstwhile regime of M Karunanidhi for precipitating TNEB’s plight to the present state, adding her administration had no plans now to bail out the board.

She said the 1957-founded TNEB’s current loss was at Rs 40,659 crore, and it had a debt burden of Rs 42,175 crore. “Its debt is expected to likely to cross Rs 53,000 crore by end of the current fiscal,” she added. Besides, the Board has to pay around Rs 10,000 crore to power producers and contractors.

In 2010-11, TNEB had borrowed Rs 21,385.70 crore. So far, it has repaid Rs 15,000 crore towards instalments and interest. In such circumstances, rating agencies have reduced their outlook for the board, Jayalalithaa said.

Leading bankers in the state, when contacted, said they had not got any information about the RBI having blacklisted TNEB.

Jayalalithaa said her government had paid Rs 2,016-crore subsidy to TNEB, besides giving it an advance of Rs 1,055 crore. Another Rs 2,000 crore would be given to the Board as share capital, she said.

Further, the government had, last month, given another Rs 500 crore to the Board to buy power from the open market. “We don’t have anymore money to give it,” she added.

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