‘Amendments to Mega Power Policy 2009 gives breather to banks’

‘Amendments to Mega Power Policy 2009 gives breather to banks’

The extension by five years for complying with the Mega Power Policy 2009 norms will reduce contingent liabilities and free up banking limits to 25 mega power projects, thus granting them a fresh lease of life, says a report.

According to a report by India Ratings and Research (Ind-Ra), this move will also in turn free up banks’ potential exposure to the power sector by around 3.50 per cent or Rs 4,000 crore, providing them additional headroom to lend to the power sector.

“This is applicable to 25 mega power projects of around 32,330 MW of coal and gas based power plants which have provisional certificates, but are awaiting the final mega power status,” it said.

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Credit By: ET Energy World

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