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
said.
WBSEDCL has not seen a tariff revision since October
2016 and its annual performance review has been pending since
FY14.
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)
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