Stressed assets in the power sector would not be “sold for a song” as these projects would become viable with an upcoming surge in demand, power minister RK Singh said. A State Bank of India-led consortium of banks had identified as many as 11 stressed power projects with a combined capacity of 12,460 MW for possible takeover by new promoters under the so-called Samadhan scheme (see chart). State-run Rural Electrification Corporation has also come up with a plan to revive stressed power assets and the finance ministry would consider this proposal as well. Non-performing assets (NPAs) in the power generation sector have more than doubled to around Rs.70,000 cr. from Rs.34,244 cr. a year ago. Also, about 10,000 MW of power generation assets with a total debt of over Rs.34,600 cr. are now before National Company Law Tribunal, constituting 18% of the sector’s exposure to lenders. Out of these assets, 8,800 MW (debt of Rs.24,000 cr.) are in early stages of construction with major milestones yet to be achieved.

(Financial Express)