Circular debt – omnipresent
There are reports that the circular debt has reached new heights; almost doubling from the levels back in 2013. The highest figure suggested is Rs 922 billion for total circular debt in the country’s energy chain, including the Rs 450 parked separately with the Power Holding Private Limited (PHPL) that has the purpose of raising funds from commercial banks. Recently, the Ministry of Power Division has reported that circular debt has increased to over Rs 750 billion, which is still a significant jump from 2013 levels.
Published in Business Recorder, 15th March, 2018