India’s Power Sector ‘Held Hostage’ By Weak Electricity Providers, Vinayak Chatterjee Says

India’s Power Sector ‘Held Hostage’ By Weak Electricity Providers, Vinayak Chatterjee Says

Government-run power distributors in India continue to hold the sector “hostage” as there has been little improvement in their operations despite multiple attempts over the years, Vinayak Chatterjee, chairman of Feedback Infra told BloombergQuint in an interview. Unless the operational side of these discoms is set right, the country’s power generators — whether coal or renewable energy — will continue to face stress, Chatterjee said.

The power sector is a point of stress for the economy and the Indian banking sector. Power accounts are a significant proportion of large stressed assets, which are being resolved through the Insolvency and Bankruptcy code. Analysts have noted that finding buyers and investors for stressed power assets may be difficult. Chatterjee agrees. Read More…

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