Stressed assets in the power sector escaped insolvency under the new Reserve Bank of India circular but uncertainty still remains for those assets where debt resolution processes are underway.
As India battles unemployment, the muted fresh capacity additions in coal-fired generation and stressed power assets are set to magnify the job crisis, a study said.
A decision by India’s top court to quash a method prescribed by its central bank for dealing with bad loans has triggered renewed demand to set up a manager for stressed power assets estimated at $36 billion.
A year after India’s central bank tightened the screws on companies delaying debt payments, the nation’s Supreme Court is poised to begin hearing arguments on whether the regulator’s diktat applies across industries.
The recommendations of a high-level empowered committee (HLEC) on stressed power assets will be placed before the Cabinet soon for approval, power minister RK Singh said on Tuesday.
In upward economic trend and better distribution connectivity have set India’s power sector for demand growth, yet it continues to face intrinsic challenges that could still upset the applecart.
The government has constituted a Group of Ministers headed by Finance Minister Arun Jaitley to vet the recommendations of a high-level panel on stressed power projects, as per an official order.
Bankers are hoping to resolve at least four troubled power plants by end-December, even as as the Supreme Court resumes the hearing on stressed power assets on Wednesday. Among those units for which bankers are expecting
As many as 19 gigawatt (GW) capacity out of the 40 GW identified as stressed power assets can participate in the second phase of the government’s Scheme for Harnessing and Allocating Koyala (coal) Transparently in India (SHAKTI) programme, according to Crisil.
“We are working on different funds — one for corporate, one for SMEs (small and medium enterprises), one for retail,” IFC said.
The International Finance Corporation (IFC) is setting up three funds to acquire as much as a fifth of the stressed assets that emerge from India’s ongoing resolution of bank debt that’s gone bad. The World Bank’s private finance arm will aim