Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Power - Discom liquidity infusion scheme gains traction - ICICI Securities

Posted On: 2020-10-30 08:25:12


With sanctions totalling Rs1.14trn and application for a further Rs157bn (under UDAY limit relaxation) by Chhattisgarh, Jharkhand and Uttar Pradesh, the total applications under the PFC/REC Aatmanirbhar Scheme to infuse liquidity into discoms touch Rs1.3trn. Of this, Rs311.4bn has already been disbursed to several states. UDAY limit relaxation has allowed states to borrow more and, apart from the mentioned states, others including Maharashtra, Himachal Pradesh, etc. have also availed of the benefit. Given that SEBs are comfortable with the conditions, further disbursals, including the second tranche, are expected in the next 3-4 months. This will significantly help ease the sector's receivables concerns (overdues reached Rs1.22trn in Aug'20) in the next few months, particularly of the CPSEs. NTPC and Coal India remain our top picks in the sector.

- Loan sanctions nearing Rs1.3trn for the scheme; Rs311.4bn disbursed: Till 28th Oct'20, the PFC/REC Aatmanirbhar scheme to infuse liquidity into discoms has received interest totaling Rs1.3trn, of which Rs1.14trn has already been sanctioned and Rs157bn under UDAY limit relaxation are in process. Rs311.4bn has been disbursed till date.

- Tamil Nadu approves guarantee and budgetary support for repayment: Tamil Nadu government has approved guarantee and budgetary support for repayment of Rs302.3bn loan to be taken under the scheme (already sanctioned). The state's finance department has issued orders for unconditional and irrevocable government guarantee and commitment letters for the proposed loan. This is the biggest loan application by a state, about one-fourth of the total scheme size. Given that SEBs are comfortable with the conditions, we expect the time lag for second tranche to be less than 3-4 months. GoI has already relaxed the working capital limits of states to go beyond 25% of past year's revenues, as prescribed under UDAY. Under UDAY limit relaxation, the latest sanction received is by Maharashtra for an additional Rs46.6bn (which may double to Rs93.1bn after PFC sanctions) and several states have shown their interest to avail of this benefit.

- Disbursement to ease concerns about overdues: We believe further disbursements under the package will channelise liquidity into the value chain by clearing dues of CPSUs and IPPs, easing systemic stress further. As per the Praapti portal, discom overdues reached Rs1.22trn in Aug'20, with overdue to NTPC at Rs194bn. Further, as per the coal ministry, outstanding dues payable by power companies to CIL reached Rs221.3bn in Sep'20. Thus, CPSUs will be among the largest beneficiaries.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Economy - MPC holds rates; policy largely non-event - ICICI Securities

Monetary Policy - Mr. Rajiv Sabharwal, MD and CEO, Tata Capital

RBI maintains status quo, realtors rely on increased demand

Cadila receives DCGI approval - Angel Broking

Maintain BUY on UltraTech Cement - Speeding on organic expansions! - HDFC Securities

HCL Technologies - Quant Pick - ICICI Direct

Teamlease Services - Gladiator Stocks - ICICI Direct

Mindtree Ltd - Analyst Meet Update - ICICI Direct

Bajaj Finserv - Company Update - Dec 2020 - ICICI Direct

RBI Monetary Policy - Dec 2020 - Views of Industry Experts

RBI Monetary Policy - Dec 2020 - Views of Shanti Ekambaram, Group President - Consumer Banking, Kotak Mahindra Bank

Views on RBI Policy: Mr. Dhiraj Relli, MD &CEO, HDFC Securities

RBI monetary Policy - Dec 2020 - Angel Broking

View on RBI Monetary Policy - Dec 2020 - Mr. Amar Ambani, YES SECURITIES

Accommodative stance necessary to revive growth: Dr. Niranjan Hiranandani - President at ASSOCHAM & Chairman Hiranandani Group

Views on RBI Monetary Policy - Dec 2020 - Ms. Bekxy Kuriakose, Head - Fixed Income, Principal Asset Management

RBI stays put to aid in maintaining real estate sector recovery - Ramesh Nair, CEO and Country head, JLL India

Views on Dec, 2020 RBI Monetary Policy from Industry Experts

MPC - Dec 4, 2020 - Acuité Ratings & Research

Realty sector's hopes are high from RBI's MPC

Citibank issued a report on RBL Bank: Recommends 'BUY' with target price Rs. 275

Russia to adopt vaccination for Covid-19 - Angel Broking

68% of borrowers are unaware of their CIBIL score, reveals Home Credit Survey

Auto Sector - Monthly Volume Round-up - Nov 20 - Reliance Securities

What do brokerages say on Burger King India Limited's IPO?

The Phoenix Mills - Potential fund infusion may usher in growth - ICICI Securities

Godrej Agrovet - Beneficiary of 60% increase in palm oil prices - ICICI Securities

Automobiles (wholesale) - Wholesale dispatches rise amidst modest retail trends - ICICI Securities

Oil & Gas - Sector Update - Dec 2020 - ICICI Direct

Phoenix Mills (Buy): Asset monetisation at favourable terms... - ICICI Direct

Aditya Makharia's views on November Auto Sales Number for November 2020 - HDFC Securities

Burger King India - IPO Review - ICICI Direct

Quant Pick - LIC Housing Finance - ICICI Direct

Tech Mahindra - Analyst Meet Update - ICICI Direct

Gladiator Stocks - Crompton Greaves Consumer Electricals - ICICI Direct

Derivatives Monthly Outlook - Nifty support at 12800 for ongoing momentum...

Quant Pick - Sun Pharmaceuticals - ICICI Direct

Monetary Policy - Expectation from YES Securities

Sector Update on Asset Management Companies - Subdued but improvement expected - HDFC Securities

Pre Monetary Policy View - Dec, 2020 - Lakshmi Iyer, President and CIO (Debt) & Head Products, Kotak Mutual Fund

Maintain REDUCE on Siemens - Smart recovery priced in - HDFC Securities

Banking Sector Credit Trends - Growth continues to moderate - HDFC Securities

Q2 FY21 GDP: Light at the end of the tunnel - YES Securities

Siemens - Q4 FY20 Result Update - YES Securities

Super action in Home Loans - SBIN, ICICIBC, AXSB, HDFC and LICHF gaining share - YES Securities

Polymer price tracker - Dec 1, 2020 - PVC prices continue to tread higher - ICICI Securities

Bajaj Finance - Company Update - Dec 2020 - ICICI Direct

Siemens Ltd - Healthy revival in orders and margins - ICICI Securities

Covid Recovery Pulse - Nov 30, 2020 - Festive positivity continues in auto retails, e-way bill generation improves...

Derivatives Weekly View (November 27): Momentum expected to continue in broader markets with Nifty support at 12800...



Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019