Latest news with #LatePaymentSurcharge
Business Recorder
3 days ago
- Business
- Business Recorder
Debt re-profiling with Chinese IPPs: PD, FD likely to share implementation proposal
ISLAMABAD: The Power Division and the Finance Division are likely to share final proposal for complete implementation of power sector debt re-profiling with Chinese IPPs to impact the existing tariff with Prime Minister Shehbaz Sharif in a few days, well informed sources told Business Recorder. This information was recently shared by the Power Division with the Prime Minister, following which Chinese Ambassador to Pakistan Jiang Zaidong held a meeting with the Minister for Power Sardar Awais Khan Leghari. China International Capital Corporation (CICC) had initiated the due diligence which halted for awhile, after the killing of three Chinese officials near Karachi airport in a suicide attack. Currently, Central Power Purchasing Agency-Guaranteed (CPPA-G), the Market Operator (MO) owes about Rs 475 billion to Chinese CPEC IPPs. Chinese IPPs face Rs500bn in unpaid dues The government wants the Chinese IPPs to write-off huge Late Payment Surcharge (LPS) which they have not agreed to and have urged Pakistani authorities to take up this thorny issue with Beijing as they are unauthorized to take any final decision on it. Prime Minister, Sharif who is visiting China to attend the Shanghai Conference at the end of current month, is expected to table this issue before the top Chinese leadership. Minister for Planning, Development and Special Initiatives, Ahsan Iqbal, who also heads CPEC affairs is finalizing the wish list for the Prime Minister. Power Division with the support of Finance Division is finalizing the requisite documents with about 18 commercial banks to disburse the amount of Rs 1.275 trillion to retire power sector circular debt to bring it down from current level of Rs 1.614 trillion to around Rs 330 billion. The sources said since a major chuck of banks loans of Rs 1.275 trillion are to be given to the ' protesting' Chinese CPEC IPPs, the government wants a discount like offered by other IPPs on account of LPS. This will have significant impact on the balance sheets of Power Holding Limited (PHL). 'Circular debt swap arrangement is under discussion for loan of Rs 1.225 trillion to be parked in CPPA-G. Base loan of PHL of Rs 660 billion is assumed for FY 25 with additional loan Rs 565 billion to be availed from commercial banks ,' the sources quoted Power Division as informing the Prime Minister. Swap of circular debt stock of Rs 2.4 trillion in six years is to be through re-financing of Rs 1.275 trillion at cheaper rates to be serviced by Debt Service Surcharge (DSS) of Rs 3.34 / kWh. However, this cap will be removed as per agreement with the IMF to bridge any gap in collection. The Cabinet approved the transaction on June 18, 2025 with 16 documents received from banks and 5 documents awaited. In this regard Power Division's team was in Karachi to finalize the remaining documents with the banks. The package is to be executed on Friday (Aug 15) or next week. Drawdown to be in place on execution within 90 days. Power Division has harvested Rs 260 billion LPI waiver as of June 30, 2025 whereas Rs 76 billion is under negotiation- nuclear Rs 32 billion + 17 billion RLNG, Uch 8 billion and Rs 19 billion miscellaneous. According to Power Division, it has signed renegotiated settlement agreements with 42 power projects of which contracts of 6 were terminated. Tariffs with 16 thermal power plants, 9 baggasse-fired power plants, 4 GPPs/RLNG, 2 Gencos, 6 nuclear power plants have been completed. The reduction is now translated through QTAs. The Prime Minister has also been informed that negotiations with 34 power projects are also underway. Of this 3 projects are hydel of KPK, 3 SHPs in GEPCO jurisdiction, 18 CPEC (5 wind, 3 solar, 1 HVDC, 7 coal, 2 hydel) 2 Korean, (Laraib and Lucky), 3 DFC Wind and WAPDAs' Neelum Jhelum Hydropower project is expected to be operational after two years. Copyright Business Recorder, 2025
Time of India
04-08-2025
- Business
- Time of India
PNB lifts NPA tag from IL&FS Tamil Nadu power project
Mumbai: Punjab National Bank the lead-banker for IL&FS Tamil Nadu Power Company (ITPCL) has upgraded its loan accounts from non-performing asset (NPA) to standard on July 29, 2025 – a move that will enable the lenders to recover nearly Rs 6000 crore of written off loans. ITPCL, a subsidiary of IL&FS Energy, operates a 1,200 MW coal-fired thermal power plant in Cuddalore. Of the Rs 9,587 crore debt as of March 2023, 65% was reclassified as sustainable under a restructuring package, with repayments extended till FY2038. The rest, deemed unsustainable, carries a nominal interest of 0.001% and will be retired through lump-sum payments in FY2039 and FY2040. An IL&FS spokesperson confirmed this. 'The total debt exposure of the 12-member lenders' consortium, along with unsecured lenders, was Rs 9,600 crore, which was fully restructured into sustainable and unsustainable the successful restructuring in Sept 2023, ITPCL repaid Rs 3,600 crore, which included about 50% of the sustainable debt and an accelerated repayment of the unsustainable current outstanding debt stands at approximately Rs 6,000 crore,' the spokesperson said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Blood cancer is taking our curious baby away from us! Donate For Health Donate Now Undo The upgrade comes nearly seven years after the IL&FS group defaulted on its debt, sparking panic in financial markets and exposing systemic risks in infrastructure financing. ITPCL was one of several group entities that fell under court-supervised restructuring. The Cuddalore plant's Unit I is backed by a long-term power purchase agreement (PPA) with TANGEDCO (Tamil Nadu Generation and Distribution Corporati till Sept 2028, providing stable revenue. Unit II operates in the merchant market without a PPA and remains vulnerable to tariff volatility. The company saw its plant load factor for Unit II rise from 36% to 70% over two years due to a short-term spike in power prices, though recent tariff declines have raised concerns over future earnings. High generation costs—driven by imported coal and expensive inland logistics—remain a drag. ITPCL has no fuel cost pass-through under the PPA, resulting in an under-recovery of about Rs 0.8/unit in H1 FY25. Relief under Section 11 of the Electricity Act has allowed higher energy cost recovery from TANGEDCO, but this was only until Feb 2025. The company has begun constructing a captive jetty to cut coal transport costs by Rs 0.15–0.30/unit. The Rs 200 crore project is expected to improve competitiveness, but cost pressures remain high. Cash flows have improved after the Centre's Late Payment Surcharge (LPS) scheme enabled recovery of Rs 2,100 crore in TANGEDCO dues, with Rs 540 crore inflow annually till FY26. ITPCL's liquidity stood at Rs 2,100 crore in Nov 2024. ICRA upgraded ITPCL's rating to BB (Stable) in Jan 2025, citing improved liquidity, earnings visibility, and progress under the restructuring plan. However, with total debt to EBITDA at 4.5x and interest cover at 2.2x, financial pressure persists. The upgrade affirms progress in the IL&FS group's recovery, though full resolution remains dependent on regulatory support, fuel costs, and future offtake arrangements. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Hindustan Times
12-07-2025
- Business
- Hindustan Times
DJB faces ₹1.42 lakh crore unpaid dues: Parvesh Verma
New Delhi, Water Minister Parvesh Verma on Saturday said the Delhi Jal Board is staring at an unprecedented financial crisis, with pending water bills around ₹1.42 lakh crore across the city. DJB faces ₹ 1.42 lakh crore unpaid dues: Parvesh Verma The DJB, which is in charge of supplying water, has been facing a major cash crunch. "In three categories, we have identified that the commercial category has the highest amount of dues ₹66,000 crore followed by the government category ₹61,000 crore and then domestic ₹15,000 crore," said Verma. The minister said these are mostly Late Payment Surcharge , adding the government plans to waive it off for domestic and government categories. The amount of charge that would be waived off is yet to be decided, he said. The DJB, which as well manages the sewage system, including collection, treatment and disposal of wastewater, in Delhi is also burdened by a debt exceeding ₹70,000 crore, including principal and interest amounts. Verma said the Delhi government has approached the Centre to assist in recovering dues from various government establishments. "We have also requested the Centre to help the government in getting the bill dues from several government establishments owed to us. The Board urgently needs funds to execute several infrastructure projects, including the cleaning of the Yamuna and upgrading the water supply network," he added. At least ₹6,000 to ₹7,000 crore in revenue will be collected after the LPSC waiver in the domestic and government categories, according to the government estimates. The establishments like private schools and hospitals are all included under the commercial category besides the government buildings and offices. Currently, the DJB has around 29 lakh registered customers. "We plan to waive off LPSC charges and the system will be ready within a month," said Verma. According to officials, there is also an issue of high compound interest rates on late bills around 18 per cent which increases the total bill amount significantly. In a step towards reducing consumer disputes regarding faulty meters and meter reading issues, the DJB is also planning to replace all mechanical water meters with smart water meters, they said. This article was generated from an automated news agency feed without modifications to text.
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Business Standard
12-07-2025
- Business
- Business Standard
Delhi Jal Board faces Rs 1.42 trillion unpaid dues: Parvesh Verma
Water Minister Parvesh Verma on Saturday said the Delhi Jal Board (DJB) is staring at an unprecedented financial crisis, with pending water bills around Rs 1.42 lakh crore across the city. The DJB, which is in charge of supplying water, has been facing a major cash crunch. "In three categories, we have identified that the commercial category has the highest amount of dues Rs 66,000 crore followed by the government category Rs 61,000 crore and then domestic Rs 15,000 crore," said Verma. The minister said these are mostly Late Payment Surcharge (LPSC), adding the government plans to waive it off for domestic and government categories. The amount of charge that would be waived off is yet to be decided, he said. The DJB, which as well manages the sewage system, including collection, treatment and disposal of wastewater, in Delhi is also burdened by a debt exceeding Rs 70,000 crore, including principal and interest amounts. Verma said the Delhi government has approached the Centre to assist in recovering dues from various government establishments. "We have also requested the Centre to help the government in getting the bill dues from several government establishments owed to us. The Board urgently needs funds to execute several infrastructure projects, including the cleaning of the Yamuna and upgrading the water supply network," he added. At least Rs 6,000 to Rs 7,000 crore in revenue will be collected after the LPSC waiver in the domestic and government categories, according to the government estimates. The establishments like private schools and hospitals are all included under the commercial category besides the government buildings and offices. Currently, the DJB has around 29 lakh registered customers. "We plan to waive off LPSC charges and the system will be ready within a month," said Verma. According to officials, there is also an issue of high compound interest rates on late bills -- around 18 per cent -- which increases the total bill amount significantly. In a step towards reducing consumer disputes regarding faulty meters and meter reading issues, the DJB is also planning to replace all mechanical water meters with smart water meters, they said.
Indian Express
03-06-2025
- Business
- Indian Express
In relief for Delhiites, govt to soon waive ‘pending, inflated' water bills: Minister
In a major relief to residents of the national capital, the Delhi government is soon going to waive 'pending, inflated' water bills, along with the late payment surcharge, Water Minister Parvesh Sahib Singh said Monday. Addressing a press conference on the BJP completing 100 days in power and the achievements of his departments, he said, 'A scheme to waive all domestic water bills is under preparation and it will be implemented soon. Once it is launched, all domestic water bills will be reduced by around 90%…' 'But until this scheme is officially launched, I have already said that if someone hasn't paid their bill, their connection won't be disconnected for now. The people of Delhi are aware that the government is bringing a new scheme, so everyone is waiting for it… So, until the bill payments are sorted out — and right now there are some technical issues — once that is resolved and the scheme is launched, it will reduce the inflated and pending bills up to 90%,' he added. He said that, currently, the software being used by the Delhi Jal Board was developed and maintained by Wipro. 'Their lease period has already ended, and they have been given an extension… the company has refused to make any further changes to the current system… Once this is resolved, the scheme will be launched,' he said. Sources said that under this scheme, the focus will be on waiving the Late Payment Surcharge (LPSC) of domestic bills. 'LPSC charges are calculated at 18% interest plus compounding charges,' said sources. Currently, in the domestic category, the outstanding bill amount is approximately Rs 12,000 to Rs 13,000 crore, out of which Rs 7,000 crore is LPSC. 'If we waive that, we will still be able to recover at least Rs 5,000 to Rs 6,000 crore,' said sources. 'Because several residents have not paid their bills for the past 8-9 years, this is an incentive for them to pay the principal amount. Once LPSC is waived, the government will rationalise the bills and give a timeline to the people to pay the principal amount. They will be asked to pay the bills in three to four months. No more extensions or schemes will come after this,' said sources. Besides, the minister also said that the government plans to upgrade the water billing system to address the challenges of revenue losses. According to officials, Delhi has approximately 29 lakh water connections. As per the 2011 census, Delhi has 34 lakh households. Last year, the previous AAP government also announced a one-time settlement scheme for pending water bills ahead of the Lok Sabha elections, claiming that it would benefit around 12 lakh consumers, of which 7 lakh will not have to pay any amount. However, the scheme hit a roadblock after the Finance Department raised questions and said that it would lead to financial implications. It said that the benefits of the scheme should not be given to the consumers who have not paid the bills for the last 11 years.
