Kolkata, Aug 28 (IANS): The centre is soon coming up with a long-term framework to bail out the ailing Damodar Valley Corporation (DVC) from its losses, union coal and power minister Piyush Goyal said here on Friday.
Blaming decades of past administration for the prevalent situation in the corporation which has turned it into a loss making organisation, the minister said a joint framework between the centre, state-owned NTPC and DVC is being worked out to create a "win-win situation".
"In the last few months, we have a focused effort to setting DVC right... We will bring down the losses significantly and working on a sustainable plan -- how these incomplete projects can be completed and their interest burden and losses brought down, how it can embark on improving its technology", Goyal told mediapersons here in a press conference.
Until recently, the state-owned company was in talks with banks and other financial institutions to restructure its Rs.30,000 crore debt burden.
It was also considering raising additional funds through the bond market.
"NTPC and DVC is in dialogue with each other and I can assure you they are working as an organic entity to support each other's long-term interest and problems", he said.
The minister said he was focusing on improving the efficiency of the organisation and providing decisive leadership and vision.
Asked if disinvestment or dilution of government stakes was an option, Goyal said, "It's ownership is with the government and in the near foreseeable future will continue with the government."
"The corporation, which was started soon after independence will once again become a jewel of India and not only become profitable but serve the people in a much better fashion", Goyal added.
It is presently spending about Rs.1,200 crore every year as interest on its existing debt which was taken to set up additional capacities to the tune of nearly 5,000 MW.
However, lack of finances and cumulative interest had led the company to stall many of its plans.
The public utility company had suffered a Rs.1,050 crore loss during 2013-14.