UPPCL to issue bonds worth Rs 80 billion

Uttar Pradesh Power Corporation Limited (UPPCL), the umbrella body of the state’s five discoms, will issue bonds worth Rs 80 billion to meet its operational expenses.

The issue will hit the market in early March. For this, UPPCL has appointed three merchant bankers, Trust Investment, Tipsons and AK Capital.Delays in release of subsidies by the state government and the high aggregate technical and commercial (AT&C) losses of 27.5 per cent in 2020-21 have resulted in a rise in losses ofdiscoms. Additionally, a decline in the rate of growth of revenue due to the pandemic in 2020-21 has also caused the losses to rise. UPPCL’s accumulated losses stood at Rs 704.54 billion in 2020-21 with an outstanding working capital loan of Rs 662.77 billion and capex loan of Rs 111.05 billion. Besides, it also owes Rs 264.19 billion as outstanding dues to power generators.