Stressed thermal assets that are referred to the insolvency court may retain their coal and power supply and long-term transmission network access rights. The high-level empowered committee, constituted by the Prime Minister’s Office, considered these special dispensations to the troubled projects to help their lenders recover a fair value.
Power projects referred to the National Company Law Tribunal (NCLT) lose their fuel supply agreements (FSAs) with Coal India Ltd, power purchase agreements (PPAs) with state governments, and long-term transmission contracts with Power Grid Corp of India.
“The high-level empowered committee during its first meeting has decided to preserve the three contracts vital to the power projects that can save the value of the projects and fetch fair deals,” said a government official on the condition of anonymity. Read more
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