Power Minister asks PFC, REC for speedy resolution of stressed assets

Our Bureau New Delhi | Updated on October 06, 2021

Power Minister RK Singh   -  The Hindu

In the national interest, he suggests resolving stressed assets at fair value with a minimal haircut.

In a recently held review meeting on the performance of Rural Electrification Corporation (REC) and Power Finance Corporation, Power Minister RK Singh stressed the need for a speedy resolution of stressed assets and suggested a slew of measures to both organizations in this context. He asked both the companies to ensure that the stressed assets are resolved at a fair value with a minimal haircut and in line with the national interests, Power Ministry said on Wednesday in a statement.

In the review meeting, held on October 4 and October 5, Singh emphasized both PFC and REC to increase their outreach by establishing a physical presence across the country. Apart from this, he also directed that the system of oversight on the projects funded by PFC and REC should be tightened, which includes increasing the frequency of inspections by the company officials and hiring expert professionals from the market. He also emphasised on strengthening the risk management framework of both Institutions.

Meanwhile, Singh also highlighted Government’s vision to make available affordable power for all 24x7. In this context, he stressed the need to improve the competitiveness of both institutions to increase their market share.

The Minister advised PFC and REC to explore better and cheaper options for raising funds, including from offshore sources, with an overall objective of ensuring that the power sector value chain gets access to cheaper funds.

"For this, he directed PFC and REC to carry out a strategic analysis to adapt to the changed business environment in the Sector with an overall objective to deliver power to consumers at a reasonable cost," the release further added.

Published on October 06, 2021

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