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PSU Banks are in Damage Control Mode to Revive Stressed Power Projects

News

Keen to keep stressed assets under check, large state-owned lenders have taken it upon themselves to hand-hold incomplete thermal power generation projects and ensure their successful completion. Banks are bringing in third party turnaround experts to monitor the progress of such projects and to make sure that deadlines are strictly adhered to.

Source: live mint

SNP Insight

These strategic step by PSU Banks may open a window of opportunity for both the lenders and the developers. The financially stressed developer can sell the project to an appropriate buyer and exit from the project. From bankers prospective it may increase the chance of project completion and return on investment. This may reduce the risk of NPAs for the banks who has loaned heavily to power projects.  

Source: SNP Infra Research