CEB in Rs 7 Billion Debt Crisis: Glory Days Gone, Critical Times Ahead

The Central Electricity Board (CEB) is facing financial crisis with bank overdrafts reaching Rs 7 billion, marking the end of its prosperous era.

Formerly holding reserves in billions, the CEB is now grappling with deficits since the financial year 2021-2022.

Challenges exacerbated by lockdowns in 2020 and 2021 have led to decreased revenue streams.

Significant spending on coal and external factors like the conflict in Ukraine and COVID-19 have worsened the situation.

The CEB is relying on bank overdrafts due to financial strain. Despite previous profitability, current circumstances demand tariff hikes and investments to ensure sustainability.

However, with continued reliance on overdrafts, the CEB’s financial future appears tenuous, with past reserves being tapped for outside funds.

Patrick Assirvaden, President of the Labour Party and responsible for the energy dossier voiced concerns over the mismanagement of funds by Pravind Jugnauth and Joe Lesjongard leading to the current crisis.

The CEB’s inability to meet financial obligations without overdrafts jeopardizes its future prospects, posing a severe dilemma for the organisation.

Source: Defi Media