IL&FS Tamil Nadu Power Company Limited (ITPCL), the power arm of Infrastructure Leasing and Financial Services (IL&FS) Group in Cuddalore, Tamil Nadu is expected to complete the restructuring of its Rs 55 billion loan by September-end.
The company had over Rs 20 billion receivables from the state discom which had held up the restructuring process. Currently, Tamil Nadu’s state discom has exhausted its borrowing limit as per the (Fiscal Responsibility and Budget Management) FRBM Act, it cannot borrow from the first tranche of Rs 900 billion funds approved by the central government through Power Finance Corporation (PFC) and REC. The approval for the loan from PFC and REC is likely to come by September-end once the state discom’s FRBM limit has been re-examined.