South Korean government approaches PMO for stressed power asset

The South Korean government has reportedly approached the Prime Minister’s Office expressing concerns over its first foreign direct investment in the Indian power sector turning into a non-performing asset. Korean Western Power Company Limited holds 40 per cent stake in Pioneer Gas Power Limited, which owns and operates a 388 MW gas-based power plant at Raigad in Maharashtra, while the rest is held by India’s Pioneer Group. However, the project has been lying idle since July 2016 owing to the lack of natural gas and banks might initiate insolvency proceedings in the National Companies Law Tribunal.

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