News Detail

<p><span style="font-size:9.0pt">According to a report by rating agency, the overall stressed thermal power generation assets remain a sizeable 60,000 mw. Of this about 26,000 mw are in trouble due to absence of long-term PPAs (power purchase agreements), about 12,000 mw are stranded due to non-availability of domestic gas supply and 22,000 mw due to unviable tariff in the PPAs and capital cost overrun.</span></p> <p><span style="font-size:9.0pt">There are 34 stressed coal-based power projects. These include projects of JP Power, GMR and Essar. The 34 projects have a total capacity of 40,130 MW &mdash; 24,405MW commissioned and 15,725MW under construction. The total outstanding debt in these 34 stressed projects is Rs 1,74,468 crore.</span></p> <p><span style="font-size:9pt">The Centre plans to put forward a scheme that will enable stressed power plants to enter into PPAs and sell electricity in state auctions. The Government has decided to set up a high level empowered committee to revive stressed thermal power projects, to facilitate sale of power, ensure timely payments, payment security mechanism, changes required in the provisioning norms/Insolvency and Bankruptcy Code (IBC), Asset Restructuring Company regulations and other proposals for revival of stressed assets so as to avoid such investments becoming NPA.</span></p> <p><span style="font-size:9pt">There is a serious need to look into various issues with a view to resolve them and maximise the efficiency of investment including changes required to be made in the fuel allocation policy and regulatory framework. This would not only enhance available generation capacities but also relieve stressed Banks debts.&nbsp;</span></p>