Funding problems to ‘T’ Power Projects?

Telangana Chief Minister K Chandrasekhar Rao had set up ambitious plans in the power sector by announcing several new thermal projects. However these plans met with a roadblock after bankers are hesitant to lend money for these projects.

These institutions including Power Finance corporation (PFC) are seeking documents including balance sheets of power utilities over the last three months. Telangana government is spending huge money for purchase of power from outside sources to cover up the power deficit.

Government is spending huge money on this short duration power purchases. However the power utilities are not revealing their financial results since the bifurcation hiding their financial health. Now the funding institutions are refusing to fund the new projects until the reports are disclosed. They suspect the power utilities are in neck deep financial crisis.