Skip to content
Subscriber Only

India to Recast $76 Billion Debt at Ailing Power Retailers

  • States will take over 75% of dues, sell bonds to pay lenders
  • Retailers to issue bonds for the remaining amount outstanding
Updated on

India plans to reorganize about 5 trillion rupees ($76 billion) of debt at regional electricity retailers that have been weighed down by accumulated losses and loans, aiming to turn them profitable in three years, Power Minister Piyush Goyal said.

The plan will allow state governments, which own the retailers, to acquire over two years 75 percent of their debt as of Sept. 30, Goyal said. The states will repay by selling bonds in the market or issuing them to the lenders.