Lenders have identified 11 power projects with a combined installed capacity of nearly 13,000 MW that have turned into non-performing assets for a special resolution scheme called Samadhan, under which debt would be converted into equity and majority ownership auctioned off to investors.
This would take dud power projects off bank books, power would flow freely and everyone would live happily ever after. In this fairy tale, the prince who rides to the rescue is, of course, the investor who gallantly buys the equity the banks so generously offer.
In the real world, which investor will fail to ask, what has changed in the circumstances that made these projects turn into nonperforming assets in the first place?
Have state-owned utilities that were coy about entering into power purchase agreements with these projects suddenly decided to embrace them with passion? If penury had made them demure in the past, have they suddenly inherited a fortune from an aged relative from another fairy tale? Read More
Latest posts by ET Energy World (see all)
- Meghalaya authorities express ‘inability’ to evacuate trapped miners - January 19, 2019
- They find way to recover electricity from ‘wasted’ heat - January 19, 2019
- Hydropower expo in Nepal - January 19, 2019