Reliance Infrastructure, which is looking at monetising its assets mainly to pare debt, is selling its electricity distribution business in the national capital. In addition to concerns over regulatory assets, the Delhi distribution business is also fraught with issues over lower tariffs.
There has been no tariff hike in the last four years and experts believe that the status quo is likely to prevail in the near future.
Reliance Infrastructure operates the power distribution business in the Delhi through two subsidiaries – BSES Yamuna and BSES Rajdhani. The Delhi state government holds 49 per cent in the two companies and the remaining share is held by the parent company RInfra. This could mean that getting the Arvind Kejriwal government on board could be another challenge.