Afternoon D & C Dedicated To Mumbai
Home > Business & Investment > 'Thermal power projects with investments worth Rs 2.5 lakh cr facing stress'

'Thermal power projects with investments worth Rs 2.5 lakh cr facing stress'

Monday, February 11, 2019

Investments worth over Rs 2.50 lakh crore in thermal power projects (based on domestic coal, imported coal and gas) are facing stress, and immediate remedial measures are needed to ensure that they are revived in a time-bound manner, as per a report.

The ASSOCHAM-Grant Thornton joint study noted that the country's power sector has been one of the highly stressed sectors in recent times, with loans worth approximately Rs 1 lakh crore having turned bad or been recast.

"As per the recent estimates, around 66,000 MW capacity is facing various degrees of financial stress, including 54,800 MW of coal-based power, 6,830 MW of gas-based power and 4,570 MW of hydropower with the lenders having an exposure of around Rs 3 lakh crore to these assets, which is alarming, to say the least," noted the study titled 'Stressed assets in the Indian thermal power sector'.

Non-availability of regular fuel supply arrangements, lack of Power Purchase Agreements (PPAs), inability of promoters to invest equity and working capital, and regulatory and contractual issues are some of the major challenges faced by thermal power projects, it said.

The report added that there is no universal solution for these ailing power assets and a mixed multi-pronged strategy needs to be adopted instead of a straight jacketed approach.

COMMENTS
No Comments Posted
POST YOUR COMMENTS
Name:  
 
Email:    
Comments:
 
 
City news
FDA files FIRs against 13 accused, online pharmac
74 per cent of women desire to change ...
In statistics compiled and presented by the Mumba
If a man is unable to pull the skin on his penis
Dr. Rajan B. Bhonsle, M.D. (Bom)
Consulting Sex Therapist & Counsellor
Dr. (Mrs.) Minnu R. Bhonsle, Ph.D.
Consulting Psychotherapist & Counsellor
Astrology
Select Sun sign:
 
Aries (Mar 21 - Apr 20)
Aries (Mar 21 - Apr 20)You are likely to remain careful and watchful today, foretells Ganesha. And because you'll be invited to parties and other social events, your enthusiasm will remain buoyant. You will also strike the right balance between business and pleasure, says Ganesha.
- Advertising -
St Xavier’s High School Fort celebrates its sesqu
Sarab Matharu uses vertical farming to fruitfully
Hindustani Classical Music Santoor Legend Pandit
Read More