Central government sets panel to tackle issue of stressed assets

The central government has set up a panel to tackle the issue of stressed power assets in the country. The committee is headed by Amitabh Kant, chief executive officer (CEO), NITI Aayog, and comprises secretaries from the MoP, Ministry of Coal and the Department of Financial Services (DFS). It is estimated that non-performing assets (NPAs) in the power sector currently account for 5.9 per cent of the banking sector’s total outstanding advances of Rs 4.73 trillion. The DFS had identified 34 stressed coal-based power projects with an estimated debt of Rs 1.77 trillion, which have been reviewed by the government. Some of the issues faced by the projects include lack of funds, absence of power purchase agreements (PPAs) and fuel security.

 

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