The Power Finance Corporation (PFC) is hopeful of resolving at least eight stressed assets 15050 MW before mid November this year.

These eight power sector assets -KSK energy, Jhabua, RKM, Bharat Utkal, Jal Power, Amravati Nasik, Essar Mahan and GMR Chattisgarh - have a total exposure of ₹ 21,876 crore across lenders and a capacity of 15050 MW. “We had an exposure in eight projects of the 34 projects identified by the Department of Financial Services. The exposure was roughly ₹ 21,876 crore with a capacity of 15050 MW,” Chairman and Managing Director, Power Finance Corporation, Rajeev Sharma.

They will hopefully be resolved outside the Insolvency and Bankruptcy Code route by mid November, according to Sharma. “But all the other lenders will also have to come on board for speedy resolution of assets. In government projects, PFC is generally the sole lender so we can take our decision quickly. In private sector projects it’s a consortium lending and in one of the projects there are as many as 27 lenders,” he added.

“The resolution for KSK Mahanadi is at the final stages. The one time settlement offer for Jhabua Power is very attractive and we have finalised the successful bidder. We are restructuring RKM Powergen with the existing developer itself and it has got Letter of Allocation for 550 MW, so now we will ask the rating agency to find out the sustainable debt,” Sharma said.

“In Bharat Utkal, it is in NCLT but one unit is commissioned. Another project is Jal Power, we will be able to close that too because our Central Public Sector Undertakings, NHPC, NEEPCO and THDC have shown interest and even the Sikkim government is interested in the project. I am quite hopeful for at least five to six good projects,” he explained.

“In RattanIndia Amravati Nashik, we have a very attractive one time offer and we will soon be able to close this. We are also discussing the Nashik project with the Maharashtra government. The valuation is complete and due diligence by NTPC is over. Now the lenders have to take a call but there are fairly good chances that we will be able to close Nashik too. Essar Mahan, the one time settlement offer is very attractive, the lenders are on board and we are likely to close this stressed account too. In GMR Chattisgarh, the H1 bidders has been finalised and the lenders are discussing and we are hopeful of being able to close this too.”

The deadline gains importance as the Supreme Court will on November 14 next hear the plea of power producers seeking a relaxation from RBI guidelines that mandate insolvency proceedings under NCLT on companies that fail to service debt beyond 180 days.

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