CENTRE SETS UP PANEL FOR STRESSED POWER ASSETS

NEW DELHI: The government has set up a high-level committee headed by NITI Aayog chief executive Amitabh Kant to address the problem of stressed assets in India’s power sector, said two people aware of the matter.

Non-performing assets in power generation accounted for around 5.9% of the banking sector’s total outstanding advances of ₹4.73 lakh crore, according to the second volume of the Economic Survey 2016-17 released in August. Tackling the issues that afflict the so-called stranded power assets will provide muchneeded relief for Indian banks weighed down by bad loans.

“The committee has held its first meeting and comprises secretaries in the ministries of power, coal and department of financial services,” one of the two people cited above said on condition of anonymity.

A second person, who also didn’t wish to be identified, confirmed the development.

Queries emailed to the spokespersons for NITI Aayog, and the ministries of power, coal and finance remained unanswered. Kant didn’t answer an email seeking comments.

A total of 34 coal-fuelled power projects, with an estimated debt of ₹1.77 lakh crore, have been reviewed by the government after being identified by the department of financial services. Issues faced by these projects include paucity of funds, lack of power-purchase agreements, and absence of fuel security.