In Tamil Nadu, due to the enhancement in the power tariff, the Lanco Infratech gets some relief because it has been facing the charges of late payments from state electricity boards or SEBs. The SEB of Tamil Nadu has agreed to pay about Rs 100 crore to this company, with the help of which the company is expecting to clear all its dues from SEBs in the next six months. However, Lanco Infratech is yet to obtain payments from other states, such as, Karnataka, Uttar Pradesh, Andhra Pradesh, Haryana and last, but not least Tamil Nadu. According to the head of investor relations of Lanco Infratech, Phillip Chacko, in more or less six months they will receive all their payments, although he did not disclose the amount of net money the company is receiving.
The State Electricity Boards of Tamil Nadu have been undergoing monetary problems because of the expenses of power procurement in the earlier times as well as lesser hikes in tariffs. This has led to the growing debt along with enhancement in due payments for power generators. However, most of them are using corrective measures for the last some months, which in turn cause some companies in restructuring of the liability. For instance, the SEB of Tamil Nadu has accumulated money with the help of a bond issue that is state government guaranteed. According to Chacko, they have two due tariff orders for two projects; one is Udupi power plant and the second is Amarkantak. The payments will be cleared after the orders.