SBI chief calls for listing of discoms
02 Jul 2012
As a long-term solution to the woes of the heavily-stressed power sector, that is likely tp seek Rs70,000 crore debt restructuring this fiscal, SBI chairman Pratip Chaudhuri has suggested listing of these highly-leveraged state-run utilities, reports PTI.
Chaudhuri said in Mumbai over the weekend his personal view was that all the discoms (distribution companies) and generating companies should try to get listed.
He pointed out the ''stock market pressures'' could help drive professionalism in such companies. He added, listing would make them more viable and would make them adopt more enlightened and commercial policies.
Further explaining the benefits of going public he said once listed the state-run utilities would have to abide by corporate governance, and that the pressure to manage ''investor perceptions'' would also help in efficiency.
He added, however that the State Bank of India (SBI) did not have any exposure to such assets which were under stress now. He said SBI did not have much exposure to the discoms and its exposure to the power sector was confined to the top-end.
He welcomed the recent 24 per cent tariff hikes in Delhi, and said it would help the borrowers increase viability of borrowers. An IBA panel had recently called for mandatory annual tariff hikes by state-run utilities by way of a pre-condition for further lending to them.
