Financial Restructuring Plan for State Distribution Licensee

(1) In the event that a Financial Restructuring Plan has been notified, inter-alia, to operationalize the financial restructuring of the State Distribution Licensee, the State Government shall take appropriate measures, to ensure that the trajectories of the operational and financial parameters in the Financial Restructuring Plan, are achieved within the stipulated time frame. (2) The State Government shall, subject to any order or direction of the State Commission, notify a Plan to undertake financial liabilities of the State Distribution Licensee and for achieving the operational and financial trajectories considered in the Financial Restructuring Plan for financing of operational losses and interest of the State Distribution Licensee and such other measures as may be specified in the Financial Restructuring Plan or any other financial restructuring scheme: Provided that these fiscal responsibilities shall be consistent with the budgetary constraints/fiscal limits available in the State fiscal responsibility and budget management limit, if any: Provided further that the State Government shall not adjust any financial liability, after it has taken them over, as loan to the State Distribution Licensee: Provided further that if the fiscal space including Debt- Gross State Domestic Product ratio under the Fiscal Responsibility and Budget Management Act, 2005, if any, is available, the State Government shall not exceed its net borrowing ceiling of the relevant fiscal year as notified by the Finance Commission from time to time: Provided further that if in a particular year the State Government has fiscal space available more than the originally projected, it shall take over the additional liabilities as soon as possible. (3) The State Government shall make Financial Restructuring Plan or such other financial scheme a part of the State budget statements for effective monitoring of its impact on the State finances. (4) The State Government shall ensure that the State Distribution Licensee does not resort to short-term loans for funding operational losses except as provided in the Financial Restructuring Plan.