Salient Features of the Scheme
For Financial Turnaround
- States will take over 75% of the DISCOM debt as on Sept 30, 2015 - 50% in FY 2015-16 and 25% in FY 2016-17.
- States to issue non-SLR including SDL bonds, to take over debt and transfer the proceeds to DISCOMs in a mix of grant, loan, equity.
- Maturity period of bonds - 10-15 years.
- Moratorium period – up to 5 years.
- Rate - G-sec plus 0.5% spread plus 0.25% spread for non-SLR.
- Borrowing not to be included for calculating fiscal deficit of the State.
Achieving Financial Turnaround
- Balance 25% of debt to remain with the DISCOMs in the following manner:
- Issued as State-backed DISCOM bonds; or
- Re-priced by Banks/FIs at interest rate not more than bank base rate + 0.10%
- States to take over future losses of DISCOMs as per trajectory in a graded manner.
[0% of loss of 14-15 & 15-16; 5% of 16-17; 10% of 17-18; 25% of 18-19 & 50% of 2019-20]
- Balance losses to be financed through State bonds or DISCOM bonds backed by State Govt guarantee, to the extent of loss trajectory finalised with MoP.
- Jharkhand and J&K given special dispensation for take over of outstanding CPSU dues