It is estimated that around 60 GW of power plant capacity is stressed in the country due to bottlenecks related to lack of power sale arrangements, fuel supply constraints, default in payment by the State Distribution Companies etc. leading to investments of around Rupees 2 Lakh Crore stranded. It is imperative that these issues are addressed, which will go a long way in preventing the power sector investments from becoming NPA. Revival of the Stressed Assets will help boost the investors’ confidence and will also help meet the growing power demand of the country.
While traditionally the issue of stressed assets in the power sector has always being looked from the banking sector’s perspective, there is a need to look into the challenges from the power sector’s perspective. In line with this vision, FICCI, under the aegis of FICCI Power Committee, is conducting a consultative workshop on ‘Reviving Stressed Assets in Power Sector’. The event is scheduled to be held on December 18, 2018, starting 3:00 PM onward at Federation House, Tansen Marg, New Delhi.
The workshop will be organised in partnership with Ernst & Young LLP. The workshop will try to address the key issues causing stress such as (i) lack of power sales and fuel supply constraints; (ii) financial re-engineering of stressed power assets; and (iii) developing an Institutional framework towards their resolution.
The workshop will bring the various stakeholders (Ministry of Power, Ministry of Finance, REC, PFC, Private Developers and Financial Institutions) under a single platform to find holistic solutions towards the revival of stressed power assets. The findings from the workshop would help in creation of an advocacy paper for Ministry of Power towards resolution of the issue of stressed power assets.
Vishal DevAdditional DirectorFICCI T: 011- 23487201