34 Stressed Thermal Power Projects Have Rs 1.8 Lakh-Crore Debt

The government has reviewed the status of 34 stressed thermal power projects with an estimated debt of nearly Rs 1.8 lakh crore, Piyush Goyal, the minister of state for power, coal, new and renewable energy said in a written reply to a question in Lok Sabha.
State-run Neyveli Lignite Corporation of India Ltd. has identified two such units of a plant operated by Damodar Valley Corporation, another public sector company, for a possible acquisition.
The lignite miner and power producer plans to augment its generation capacity, he said. The two plants of 660-megawatt each at Ragunathpur Thermal Power Station Phase-1 in West Bengal are on the shortlist, he said.
NTPC has no proposal to acquire stressed power projects or enable their lenders to operate on a contract basis, he said.
The central bank has notified the Scheme for Sustainable Structuring of Stressed Assets and the Strategic Debt Restructuring Scheme for the revival of stressed assets. “Due diligence and financial restructuring by banks to make projects viable would attract new promoters or states to bring in fresh equity investments,” he said.

Source: bloombergquint