The government plans to allocate Rs 2,000 crore to restructure and revive the five ailing electricity supply companies (Escoms) in the state. The state cabinet, which is scheduled to meet in Belagavi next week to discuss the anticonversion bill, is expected to sanction the proposal.
The five electric supply companies Bescom (Bengaluru), Chescom (Chamundeshwari),Gescom(Gulbarga), Mescom (Mangaluru) and Hescom (Hubballi) have been in the red largely due to rising dues from the government. They had recently approached Bommai seeking clearance of dues to the tune of Rs 2,000 crore to ensure uninterrupted power supply.
Energy department officials said the government will make payment in two parts grants and guarantees for Escoms to raise loans from the market.