Centre ropes in cash-rich PSUs as a lifeline to stranded power plants

According to an estimate, a total of 25,000 MW capacity - commissioned or under-construction - is lying idle for want of buyers or assured fuel supply agreements. Tenders for just 11,000 MW have been floated by the states since 2011 for new PPAs. Paying heed to the RBI's advice to improve operational efficiency of companies whose loan accounts have gone sticky through induction of new owners or managers, the government has lined up a plan under which cash-rich PSUs such as NTPC, Coal India, Power Finance Corporation and Rural Electrification Corporation will buy equity stakes in stranded power plants.