The central government has decided to set up a high-level empowered committee headed by the Cabinet Secretary to address the issues of stressed thermal power projects.
Stressed thermal power assets are a cause of concern for the country, read a statement from the power ministry.
With a view to resolve the stress and revive such assets, the government has decided to set up a committee 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 would look into the various issues with a view to resolve them and maximise the efficiency of investment "including changes required to be made in the fuel allocation policy, regulatory framework, mechanisms to facilitate sale of power, ensure timely payments, payment security mechanism, changes required in the provisioning norms/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," the statement added.
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