“We’re concentrating on an IPO by December for MSEDCL (Maharashtra State Electrical energy Distribution Firm), and before that, we’ll demerge our agriculture enterprise, which we intention to full by April,” its Chairman and Managing Director Lokesh Chandra instructed PTI on the sidelines of the Mumbai Local weather Week.
The agriculture phase shall be carved out as a separate firm, not a subsidiary, making certain its liabilities do not stay on the steadiness sheet of the core distribution utility, Chandra stated.
MSEDCL carries whole dues of about Rs 96,000 crore, of which practically Rs 76,000 crore relates to unpaid agricultural consumption, he stated.
The buildup of those arrears has led to larger working capital borrowings and monetary pressure, regardless of the core distribution enterprise being operationally viable, Chandra added.
Submit-demerger in April, the residual entity will retain debt of roughly Rs 20,000 crore, which the corporate considers sustainable, he added.
Following the carve-out, the corporate will undertake a steadiness sheet clean-up and debt restructuring before launching the IPO course of. The listing is focused for completion by December this yr, Chandra stated.The federal government is planning to dilute up to 10 per cent stake within the firm by the IPO, he stated, including that IPO proceeds are probably to be deployed in direction of capital expenditure in transmission and distribution infrastructure.
Maharashtra Chief Minister Devendra Fadnavis had introduced that the state’s intent to checklist the power utilities, together with MSEDCL and likewise the technology and transmission arms in December 2025. He hinted that the method will begin with the listing of the transmission firm in 2026.
Chandra stated that discussions with the state authorities are underway to tackle agriculture-related arrears. As soon as resolved, the restructuring is predicted to strengthen monetary metrics and enhance valuation prospects on the time of listing.
The corporate expects to save practically Rs 66,000 crore in energy procurement prices over the subsequent 5 years by a strategic shift in direction of renewable power backed by optimum storage planning.
The utility has redesigned its useful resource adequacy and energy procurement plan to increase the share of renewables from round 15 per cent presently to 52 per cent, whereas fastidiously balancing photo voltaic, wind and storage capacities, he stated.
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