Various state owned power distribution companies in India declared that the World Bank is being cynical regarding ambitious plans of India. Lead energy expert, Ashish Khanna of the World Bank mentioned that though bailouts work as great opportunities during emergencies, nothing can be said perfect unless examined directly.
While talking to reporters during a press meet on Tuesday Ashish Khanna said bailout plan results would take around half-a-year to one year to become prominent and mentioned that the crisis was more to the banking sector rather than power sector companies. Power distributing companies owe around Rs 2 trillion to various banks and financial institutes.
According to the bailout plans, state governments would take care of around half of the loans of the various electric supply companies that are still outstanding. They would convert such loans into bonds and then issue them to banks with state-government guarantees. The rest 50% would be managed by banks with a moratorium for three years.