Rajasthan's power distribution companies to raise Rs 1,500 cr through bonds

Another positive is the cost-plus tariff framework, which allows the discoms to recover the uncontrollable cost variation on a quarterly basis
Three Rajasthan-based power distribution companies (discoms) — Jaipur, Jodhpur and Ajmer — will raise Rs 500 crore each through bonds.

Rating agency ICRA has assigned provisional “BBB” rating to the bonds with “stable” outlook as the state government would provide unconditional and irrevocable guarantee on the securities.

The rating factors in the companies’ status as a wholly owned power sector entity of the state government. Another positive is the cost-plus tariff framework, which allows the discoms to recover the uncontrollable cost variation on a quarterly basis.

ICRA said the tariff hike approved by the Rajasthan Electricity Regulatory Commission in February last year is expected to improve the cash flows of these discoms, while lowering the revenue gap.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel