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5/25 Scheme in Power Sector: A Measure Taken to Revive NPAs

News

The finance ministry has taken stock of stalled power sector projects in an effort to fire the ones that are stuck only because of financing issues. 

Source:- ET

SNP Insight

Restructuring programmes are underway to revive the stalked projects of the power sector. This includes introduction of 5/25 scheme, which would help the utilities to match their cash flows with loan repayment schedule, as the long term loan tenure would be extended upto 20-25 years. This would rather help those projects where cashflows are expected after 20-25 years of operations and loan repayment schedule is designed for 10 years. Further, banks will be benefitted as they will be able realise the lended amount in the restructured schedule.

Source:- SNP Infra Research