The plan of ministries of power and finance to formulate warehousing policy or an asset reconstruction company under the title 'Pariwartan' for the stressed power assets has been put on a back burner.

The government along with certain stakeholders of the stressed power plants already had several rounds of deliberations to come up with the policy – 'Pariwartan'. But, the policy is far from taking a final shape.

'Pariwartan' stands for Power Asset Warehousing And Revitalisation, under which the stressed power sector assets were to be put under the scheme as part of the 'Warehousing Model'.

Two people aware of the matter told DNA Money that the scheme is unlikely to come out anytime soon and not much headway has been made in the recent past.

"It has not picked up much. Everybody is waiting for the new RBI circular (after the Supreme Court quashed RBI's February 12 circular). It has gone into the cold storage," said an official.

This scheme also required RBI's approval and the Rural Electrification Corporation (REC) never approached the central bank.

"I do not think that (this policy) will come in the near future," said a power ministry official.

In the recent past, Power Finance Corporation has acquired REC, both the companies have an exposure towards the stressed projects.

Under the plan, the REC had proposed that a special purpose vehicle to securitise the assets, which would be overlooked by an asset management company, along with other lenders. This asset reconstruction firm was to take power assets with a generation capacity of around 40,000 mw, or 40 gw.

Once under the fold, the asset management company was to revitalise the projects that would be jointly owned by various lenders and NTPC.

NTPC was to ensure that these assets are properly managed, and going ahead may have acquired few viable projects as part of its inorganic growth.

As part of the deliberations, each of the assets or projects was to have a customised resolution plan for a successful and better outcome.

Pariwartan's goal was to run the power plants and start servicing the debt, and later contemplate at either taking over or selling the assets.

Among the hurdles to make this scheme successful was providing support by way of coal linkages and power purchase agreements. However, with the power ministry's Shakti scheme (on coal linkage for stressed projects) already rolled out, Pariwartan's implementation looks unlikely.