Indian Power Sector Facing Financial Crisis

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Investment exceeding Rs2.50 lakh crore in thermal power projects are facing the crisis. There is an urgent requirement for helpful action to resolve this problem in a suitable manner. Ascham-Grant Thornton said this in a shared statement. Thermal power assets contain local coal and gas based developments. It has been said in the report that the power sector of the country is one of the areas which has suffered the worst crisis this year. The loans of about Rs one lakh crore given to the power sector firms have either become NPAs or have been reorganized.

According to the newest estimation, the projects of about 66,000 MW capacity are facing commercial calamity at numerous levels. It contains 54,800 Megawatts of coal-based power missions, 6,830 Megawatts of gas based and 4,570 Megawatts of hydropower projects.

Around three lakh crore rupees of moneylenders are trapped in these assets, which is bad news. Thermal missions required steady fuel source arrangement, lack of power purchase agreement, an asset in equity and working capital. There is also the difficulty of businesspersons failing and regulatory obstacles. The report said that there is no worldwide answer for these upset power properties. They need to adopt multi-dimensional tactics.