Industry

Power Ministry moves ahead to resurrect stalled, stressed projects

Union Power Minister Piyush Goyal addresses a press conference in New Delhi on Monday.

Union Power Minister Piyush Goyal addresses a press conference in New Delhi on Monday.   | Photo Credit: V. Sudershan

India intends to create 175 gw of renewable energy capacity by 2022.

Union Power Minister Piyush Goyal on Monday said the Ministry is doing its best to revive stalled and stressed thermal and hydro projects.

“We are close to resolution of stressed thermal power projects soon where developers are not wilful defaulters,” Mr. Goyal told reporters in New Delhi while speaking about three years of the government’s performance.

The Ministry has had extensive discussions with bankers and stakeholders.

According to sources, it has firmed up a policy for stalled hydro projects to revive 11,639 MW by dispensing Rs 16,709 crore till 2024-25.

Additionally, the government has decided to provide interest subvention of about 4 per cent to developers to turn around hydro projects.

The Ministry and Niti Aayog, Mr. Goyal said, were jointly working on a policy for the next 25 years to ensure energy security. He expected renewable energy capacity to surpass thermal power by 2022.

It was planned to create 175 GW of renewable energy capacity by 2022.

Close to resolving bad loans

"The Centre is close to resolving bad loans made in the power industry for companies that owe money and are not avoiding repayment on purpose," Mr. Goyal said.

Bad loans in the power sector continue to weigh on India’s banks, and the government has been looking for ways to help ease the pain for companies struggling to service their debts.

 

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Apr 3, 2020 8:26:54 AM | https://www.thehindu.com/business/Industry/govt-moves-ahead-to-resurrect-stalled-power-projects/article18965176.ece

Next Story