Indian Government stepping towards strengthening of Power Sector

Medhaj news 10 Sep 18 , 06:01:38 Power and Infrastructure
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Much has been made of the increasing mass of non-performing assets originating from India’s power sector. A number of power companies such as Jindal India Thermal Power and Lanco Anpara are anticipated to be referred to bankruptcy courts following the expiry of a deadline for the resolution of 1.7 trillion worth of bad loans from the sector. This is coarsely 20% of all the bad loans on the balance sheets of India’s banks



Recognizing the glitches that are unique to the power sector - like a liquidity crunch and a shortage of power-purchase covenants - and the need to safeguard these coal-fuelled projects don’t go through liquidation, the Indian government is planning to establish an asset reconstruction company (ARC) to resolve stressed power assets. Under its Pariwartan scheme, the state-owned Rural Electrification Corp will set up the ARC to clean up the sector in expectancy of a future revival in demand. These comprise the implementation


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