The Centre has formed a high-level empowered committee to look into issues that have contributed to the stress in the power sector.
An official statement said this committee will propose solutions to prevent these assets from becoming non-performing assets. The Committee will be headed by the Cabinet Secretary with representatives from the Ministry of Railways, Ministry of Finance, Ministry of Power, Ministry of Coal and lenders having major exposure to the power sector.
“Stressed thermal power assets are a cause of concern for the country…The Committee would look into the various issues with a view to resolve them and maximise the efficiency of investment,” a Power Ministry statement said.
“This includes changes required to be made in the fuel allocation policy, regulatory framework, mechanisms to facilitate sale of power, ensure timely payments … changes required in the provisioning norms/Insolvency and Bankruptcy Code, Asset Restructuring Company Regulations and any other measures proposed for revival of stressed assets so as to avoid such investments becoming NPA,” it added.