+
Panel formed to solve the issue of NPAs in power sector
POWER & RENEWABLE ENERGY

Panel formed to solve the issue of NPAs in power sector

According to a source in the Ministry of Power, the government recently set up a high-profile panel, chaired by <span style="font-weight: bold;">Amitabh Kant, CEO, NITI Aayog, </span>to cater to the issue of stressed assets in the power sector. <p></p> <p> As per the Economic Survey 2016-17 released in August, non-performing assets (NPAs) in the area of power generation share 5.9 per cent of the overall outstanding advances of Rs 4.73 trillion in the banking sector.</p> <p> A source from NITI Aayog, on condition of anonymity, shared with CW, 'The projects were initially identified by the financial services. The government has reviewed 34 coal-fuelled projects, resulting in an estimated debt of Rs 1.77 trillion.</p> <p> This will also avoid a further debt of Rs 80,000 crore that could result from the NPAs.' Speaking about the cause of the delay, the source pointed out to issues such as demonetisation, GST, lack of funds, lack of coal supply and the absence of fuel security.</p> <p> The panel is also expected to bring in a channelised method for power projects that will provide relief for the banks affected owing to bad loans. The panel, comprising secretaries from the ministries of power and coal and the department of financial services, will also keep a tab on wilful defaulters and take necessary action. Because of weak financial health, only a mere 1.64 gw of projects were tied up through power-purchase agreements. The panel is looking at long-term loans and PPAs to solve the issue of the 60 gw of stressed assets across fuel sources.</p> <p> 'We are looking at ways to find solutions,' says Kant. When asked about the issues the sector is facing, he refrained from further comment.</p>

According to a source in the Ministry of Power, the government recently set up a high-profile panel, chaired by <span style="font-weight: bold;">Amitabh Kant, CEO, NITI Aayog, </span>to cater to the issue of stressed assets in the power sector. <p></p> <p> As per the Economic Survey 2016-17 released in August, non-performing assets (NPAs) in the area of power generation share 5.9 per cent of the overall outstanding advances of Rs 4.73 trillion in the banking sector.</p> <p> A source from NITI Aayog, on condition of anonymity, shared with CW, 'The projects were initially identified by the financial services. The government has reviewed 34 coal-fuelled projects, resulting in an estimated debt of Rs 1.77 trillion.</p> <p> This will also avoid a further debt of Rs 80,000 crore that could result from the NPAs.' Speaking about the cause of the delay, the source pointed out to issues such as demonetisation, GST, lack of funds, lack of coal supply and the absence of fuel security.</p> <p> The panel is also expected to bring in a channelised method for power projects that will provide relief for the banks affected owing to bad loans. The panel, comprising secretaries from the ministries of power and coal and the department of financial services, will also keep a tab on wilful defaulters and take necessary action. Because of weak financial health, only a mere 1.64 gw of projects were tied up through power-purchase agreements. The panel is looking at long-term loans and PPAs to solve the issue of the 60 gw of stressed assets across fuel sources.</p> <p> 'We are looking at ways to find solutions,' says Kant. When asked about the issues the sector is facing, he refrained from further comment.</p>

Related Stories

Gold Stories

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Next Story
Infrastructure Energy

India Invites Global Mining Community to India Mining Week 2026

India has invited the global mining community to participate in India Mining Week 2026, seeking international collaboration, expertise and investment to support the development of the country’s mining and minerals sector. The event is scheduled to be held from November 15 to 17, 2026, at Yashobhoomi in New Delhi. Coal Additional Secretary Rupinder Brar extended the invitation while addressing India Mining: Global Connect, an international outreach interaction involving representatives from diplomatic missions in 19 countries. The meeting focused on opportunities for greater international par..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code