At last count, 17 under-construction thermal power projects aggregating to a capacity of 18,420 megawatts (MW) were reported as stalled due to financial problems of the developers. Alongside these, 17 stressed gas-based power projects aggregating to a capacity of 11,154.38 MW and 20 stressed hydroelectric projects totalling a capacity of 6,329 MW stuck due to financial issues, cumulative investments worth about Rs 1.9 lakh crore (based on conservative estimates of Rs 5 crore per MW for thermal projects and Rs 7 crore per MW for hydro) hang in the balance.
Amid mounting numbers of projects stuck on account of funding issues, state-owned lenders Power Finance Corporation Limited (PFC) and Rural Electrification Corporation Limited (REC) have been asked by the Centre to explore the possibility for creation of a Stressed Assets Equity Fund and a Stressed Assets Lending Fund to rescue some of these project, for which work is currently underway. Read More…
Credit By: indianexpress.com
Latest posts by indianexpress. (see all)
- IRCTC zooms 128 per cent on market debut; plans to develop budget hotels - October 15, 2019
- 13 new trains from Gujarat, Maharashtra for festivals - October 7, 2019
- Over The Barrel: A buffer called Saudi Arabia - October 7, 2019