Centre asks state-run companies to help bail out stalled power projects: The Indian Express
The construction of 17 thermal power projects, with a total capacity of 18,420 MW, has been stalled because of a financial crunch.
The Centre has asked state-run companies to come up with solutions to bail out power projects that have been stalled, reported The Indian Express on Friday. Power Finance Corporation Limited and Rural Electrification Corporation Limited have been asked to consider creating a stressed assets equity fund and a stressed assets lending fund.
According to government data, the construction of 17 thermal power projects, with a total capacity of 18,420 megawatt, has reportedly been put on hold because of a financial crunch. Around 34 coal-fired thermal projects, with an estimated debt of Rs 1.77 lakh crore, have also been identified as stressed assets. Seventeen gas-based power projects and 20 hydroelectric projects have also been identified as stressed during a deteriorating “macroeconomic environment”, The Indian Express reported.
Meanwhile, state-run Neyveli Lignite Corporation will acquire the first phase of Damodar Valley Corporation’s Ragunathpur Thermal Power Station’s 1,320 MW project, which has been identified as a stressed asset. The Chennai-based power company has also shortlisted GMR Group’s 1,370 MW coal-fired project in Chhattisgarh and Ind-Barath Power Infra’s 700 MW plant in Odisha – both stressed assets – for possible acquisition. Similarly, the government has asked National Thermal Power Corporation Limited to help banks operate these stressed assets.