Our Bureau The Centre has formed a high-level empowered committee to look into issues that have contributed to the stress in the power sector.
An official statement said this committee will propose solutions to prevent these assets from becoming non-performing assets. The Committee will be headed by the Cabinet Secretary with representatives from the Ministry of Railways, Ministry of Finance, Ministry of Power, Ministry of Coal and lenders having major exposure to the power sector.
“Stressed thermal power assets are a cause of concern for the country…The Committee would look into the various issues with a view to resolve them and maximise the efficiency of investment,” a Power Ministry statement said.
“This includes changes required to be made in the fuel allocation policy, regulatory framework, mechanisms to facilitate sale of power, ensure timely payments ... changes required in the provisioning norms/Insolvency and Bankruptcy Code, Asset Restructuring Company Regulations and any other measures proposed for revival of stressed assets so as to avoid such investments becoming NPA,” it added.
This Committee was proposed by the Secretary, Department of Financial Services. The DFS committee was tasked by the Allahabad High Court to find a resolution to power sector assets facing liquidation due to the RBI circular of February 12.
The DFS-led committee had noted that this empowered committee will be tasked to deal with cross-sector concerns raised by various stakeholders and consider suggestions made by them.
This would be in line with the recommendation given by the Parliamentary Standing Committee on Energy in its 37th report, the DFS-led committee noted.