By ATEEQ Shaikhpower Bills of 30 Lakh + Consumers Adani Electriclity Stipulated To Decline As Companies Apply to FINALLY DISCUSSION The tariff of more than 30 consumers of Lakh Adani Electricity Mumbai Limited (Aeml) will decrease in 2022 after the Mid-Term Review (MTR)) Multi-year rates (MTR) MyT) was approved by the Maharashtra (Merc) electricity regulation commission.
Power tariff reduction may be in the range of 10-20 percent and the actual benefit for consumers will be clear when MyT will be served to Merc for the final true-up.
Aeml, to reduce its interest in the loan has chosen to compensate its capital expenses, the financing of existing term loans and working capital loans, etc.
Then, it approached the Merc on the same thing, which recently approved a return plan.
For the transmission and distribution business, Aeml explores the international market to raise funds through foreign currency bonds and external commercial loans.
As of March 31, 2021, the AEML debt level reached Rs 704.32 Crore and Rs 1,994.95 Crore for its transmission and distribution business, respectively.
“The Commission noted that the order of MyT on March 30, 2020, was passed by the generation of commissions, transmissions and large distribution of Aeml, the interest rate approved for the 2019-20 TA was 9.05 percent for the three businesses.
Furthermore, the interest rate approved for working capital For FY 2019-20 is 9.55 percent for generation and transmission businesses and 9.50 percent for the distribution business.
Just like, RS 7,125 Crore futures loans have been available by Aeml at the interest rate of 8.31 percent (as of March 31, 2020) Working Capital Loans Rs 950 Crore of 4.62 Percent, Loan Capex RS 503 Crore at 8.03 percent (on 31 March 2020).
Interest rates for new loans include premiums hedging and by holding taxes.
Thus, regardless of the component In addition, interest rates for fresh loans are lower than the interest rates approved in myt orders, “read Merc.
The mastery of long-term foreign currency loans is for 10 years for bonds and three years and more for external commercial loans for the purpose of capital expenditure.
On the subject, Mumbai Mirror reaches Aeml, which explains that “interest costs for loans are permitted to be restored by the way by the regulator”.
“Before August 2018, the weighted interest rate of the Aeml loan portfolio was 10.5 percent per year, which was reduced by Aeml to 9.05 percent through refinancing and reducing the interest expense by Rs 26 Crore.
The benefits of reducing interest rates are passed on Consumers through tariff reductions between 12.3 percent and 25.5 percent (order of MyT Mic on March 31, 2020), “said Aeml.
In February 2020, Aeml refinanced loan rupees with foreign currency loans and lower interest rates to 8.30 percent, which brought the savings of RS 18 crore per year to consumers, the company said.
“The actual benefit of reducing interest rates will be forwarded to consumers by a respectable Merc through MTR MyT in 2022.”