MANGALURU: Investments worth over Rs 2,50,000 crore in thermal sector initiatives (in accordance with domestic coal, imported coal and gas) are facing pressure, and rapid remedial measures need to be undertaken to make sure that they are revived in a time-bound means, famous a contemporary ASSOCHAM-Grant Thornton joint learn about.
The learn about also famous that the rustic’s energy sector has been one of the vital extremely stressed out sectors in recent years, with loans worth approximately Rs 1,00,000 crore having became dangerous or been recast.
“As in keeping with the new estimates, around 66,000 MW capability is facing more than a few levels of economic pressure, together with 54,800 MW of coal-based energy, 6,830 MW of gas-based energy and 4,570 MW of hydropower with the lenders having an publicity of around Rs three,00,000 crore to these assets, which is alarming, to say the least,” famous the ASSOCHAM-Grant Thornton learn about titled, ‘Stressed assets within the Indian thermal energy sector.’
“Non-availability of normal fuel supply preparations, loss of Power Purchase Agreements (PPAs), incapacity of promoters to invest equity and dealing capital, and regulatory and contractual issues are one of the crucial major demanding situations confronted by means of thermal energy initiatives,” consistent with the learn about.
The record cited that there is no common answer for these sick energy assets and a blended multi-pronged strategy must be followed as a substitute of a instantly jacketed way.
“This must be completed as there are not sufficient takers for all of those stressed out assets and any unthoughtful action might lead to large credit score recovery losses for the banks/FIs (monetary institutions),” it added.
While the Insolvency and Bankruptcy Code (IBC) has already been amended four occasions since its enactment in 2016, the federal government is willing to amend it to make it more potent and efficient. “This is regarded as imperative to offer an efficient strategy to thermal energy initiatives.”
Further, an efficient resolution in a time-bound means is warranted by means of making improvements to the macro atmosphere governing the power sector, mentioned the record.
This would involve augmenting coal supplies below the Scheme for Harnessing and Allocating Koyala (coal) Transparently in India (SHAKTI) and medium-term/temporary energy procurement by means of DISCOMs to relieve the sub-optimal plant load factors (PLFs), it mentioned.
It would also require development in operations besides National Investment and Infrastructure Fund (NIIF)/NTPC led resolutions among others, additional mentioned the ASSOCHAM-Grant Thornton record.
The learn about also famous that the rustic’s energy sector has been one of the vital extremely stressed out sectors in recent years, with loans worth approximately Rs 1,00,000 crore having became dangerous or been recast.
“As in keeping with the new estimates, around 66,000 MW capability is facing more than a few levels of economic pressure, together with 54,800 MW of coal-based energy, 6,830 MW of gas-based energy and 4,570 MW of hydropower with the lenders having an publicity of around Rs three,00,000 crore to these assets, which is alarming, to say the least,” famous the ASSOCHAM-Grant Thornton learn about titled, ‘Stressed assets within the Indian thermal energy sector.’
“Non-availability of normal fuel supply preparations, loss of Power Purchase Agreements (PPAs), incapacity of promoters to invest equity and dealing capital, and regulatory and contractual issues are one of the crucial major demanding situations confronted by means of thermal energy initiatives,” consistent with the learn about.
The record cited that there is no common answer for these sick energy assets and a blended multi-pronged strategy must be followed as a substitute of a instantly jacketed way.
“This must be completed as there are not sufficient takers for all of those stressed out assets and any unthoughtful action might lead to large credit score recovery losses for the banks/FIs (monetary institutions),” it added.
While the Insolvency and Bankruptcy Code (IBC) has already been amended four occasions since its enactment in 2016, the federal government is willing to amend it to make it more potent and efficient. “This is regarded as imperative to offer an efficient strategy to thermal energy initiatives.”
Further, an efficient resolution in a time-bound means is warranted by means of making improvements to the macro atmosphere governing the power sector, mentioned the record.
This would involve augmenting coal supplies below the Scheme for Harnessing and Allocating Koyala (coal) Transparently in India (SHAKTI) and medium-term/temporary energy procurement by means of DISCOMs to relieve the sub-optimal plant load factors (PLFs), it mentioned.
It would also require development in operations besides National Investment and Infrastructure Fund (NIIF)/NTPC led resolutions among others, additional mentioned the ASSOCHAM-Grant Thornton record.
Thermal power projects with investments worth over Rs 2.5 lakh crore facing stress
![Thermal power projects with investments worth over Rs 2.5 lakh crore facing stress]()
Reviewed by Kailash
on
February 10, 2019
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