Amid the controversy involving Delhi’s acting Chief Secretary Shakuntala Gamlin and her alleged involvement in lobbying for “Reliance-owned power companies” to issue them the letter of Comfort (loC) by the Delhi Government, sources have revealed that the loC has not been asked for by Reliance, but has been sought by Government-owned Power Finance Corporation (PFC) for granting loans.
Sources in the Government told The Pioneer that BSES Rajdhani Power ltd (BRPl) and BSES Yamuna Power ltd (BYPl) are not even “Reliance” companies but are joint ventures where Delhi Government itself has 49 per cent shareholding.
“BSES companies are managed by Board of Directors, where 4 out of 9 members are nominated by Delhi Government and are seniormost IAS officers,” said an insider, adding that the loCs are in accordance with past precedents and as per Shareholder’s Agreement, Delhi Government has issued loC to NTPC in December 2011 for ensuring there is no regulation of power supply and to PFC/REC in May 2014 to raise short term loans of `1,000 crore to pay power supplier dues in compliance of orders of the Hon’ble Supreme Court.
The source added that Reliance on its part has already confirmed its willingness to issue loC as well as pledge its entire shareholding (comprising 51 per cent shares of BSES) with PFC.
“loC will enable PFC to disburse the sanctioned loans, thus enabling BSES to clear its dues to generation companies including Delhi Govt-owned utilities, and will thus benefit the Delhi Government itself,” said a source, adding that there is no benefit to Reliance by the issuance of loCs.
“The disbursement of loans and clearing of dues of power suppliers will eliminate any possibility of regulation/disruption of power supply in Delhi in the summer months, and thereby immensely benefit millions of citizens of Delhi. And there is no question whatsoever of tariffs going up in any scenario as a result of issuance of the loCs, and any such statement is a complete distortion of facts,” added the source.