The National Democratic Alliance (NDA) government is considering an asset reconstruction company of sorts to address the problem of stressed assets in the power sector, according to three people familiar with the thinking.
On Wednesday, power, coal, mines and new and renewable energy minister Piyush Goyal chaired a meeting where the subject of discussion was ways to address the issue of stalled power projects. One of the solutions suggested was the creation of a special purpose vehicle (SPV, which is a company set up for a specific purpose) to which all stressed power generation assets could be transferred after they were acquired by lenders. The department of financial services in the finance ministry would identify these assets. These projects would then be auctioned. Read More…
Credit By: Live Mint
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