India Ratings revises WBPDCL rating outlook to negative


KOLKATA, Aug 14: Non-revision of power tariff by

state utility West Bengal State Electricity Distribution

Company Limited (WBSEDCL) had its ripple effect on state

power generating company WBPDCL, which was downgraded in its

“rating outlook”.

India Ratings (Ind-Ra) has revised the outlook on the

West Bengal Power Development Corporation Limited (WBPDCL) to

“negative” from “stable” while affirming its long-term issuer

rating at IND BBB.

“The negative outlook reflects an increase in WBPDCLs

receivables to Rs 35.6 billion in Q1FY’20 (FY19 Rs 28.9

billion, FY18 Rs 23.3 billion), leading to tightening of

liquidity,” Ind-Ra said in its rating note.

“The increase in receivables was attributed to delays

in payment from its sole off-taker West Bengal State

Electricity Distribution Company Limited (WBSEDCL),” it


WBSEDCL has not seen a tariff revision since October

2016 and its annual performance review has been pending since


However, WBSEDCLs power purchase cost has increased

over FY17-FY19, resulting in an increase in regulatory assets

to Rs 127 billion in FY19 (FY18: Rs 119 billion).

The debtors pending true up rose to INR37.6 billion in

FY18 (FY17: INR28 billion) due to commencement of operations

at Sagardighi units 3 and 4, for which tariff orders are

pending, the agency said.

The West Bengal government provides grants to WBPDCL

for capex, regulatory assets, loans for working capital and

guarantees for raising term loans.

“While WBPDCL has not received any fresh regulatory

grant for working capital requirement during FY19, the

tangible support has increased by Rs 4 billion short-term

loans from the GoWB in FY19,” Ind-Ra said. (PTI)