Jammu, Feb 9: Minister of State for Power Asiea Naqash today informed the House that the proposal for financial restructuring of Jammu and Kashmir State Power Development Corporation (JKSPDC) to make it debt-free has been submitted to the Finance Department and the process is likely to be completed by the year 2019-20.
Replying to a question of Ashok Khajuria, the Minister said as per Budget decision, funds of Rs 4300 crore received by the corporation as Plan funds will be treated as loan and repaid by it to the Government, even as the government would liquidate Rs 2400 crore power purchase liability of the corporation.
She further informed that once these two transactions are done, Rs 1900 crore, the gap between the two transactions, shall be infused as equity into the company.
“Once the steps proposed for financial re-engineering will be fully implemented the corporation would launch Initial Public Offerings to raise funds for the upcoming projects” she added.
Legislator Saif-Ud-Din Bhat raised supplementary question to the main question.