BUSINESS

Govt. panel to study stressed power sector

The government on Sunday announced its intention to set up a high-level empowered committee under the Cabinet Secretary to resolve the stress in the thermal power sector.

“Stressed thermal power assets are a cause of concern for the country,” the Ministry of Power said in a statement.

Reviving the assets

“With a view to resolve the stress and revive such assets, the government has decided to set up a high-level empowered committee headed by Cabinet Secretary with representatives from the Ministry of Railways, Ministry of Finance, Ministry of Power, Ministry of Coal, and the lenders having major exposure to the power sector.”

The committee is to look into the various issues in the thermal power sector with a view to resolve them and take steps to maximise the efficiency of investment, including changes in the fuel allocation policy, regulatory framework, mechanisms to facilitate sale of power, payment security mechanisms, the Insolvency and Bankruptcy Code (IBC), asset restructuring company (ARC) regulations and “any other measures proposed for revival of stressed assets so as to avoid such investments becoming NPA,” according to the statement from the Ministry.