Money & Banking

₹18,504 cr in NPAs may be upgraded in FY18: PFC

Our Bureau New Delhi | Updated on January 12, 2018 Published on June 07, 2017

Rajeev Sharma

To prioritise investment in renewable energy

Nearly four-fifth of Power Finance Corporation’s non-performing assets (NPAs) or bad loans worth ₹18,504 crore are likely to get an upgrade this fiscal.

Another 19 per cent of PFC’s ₹4,494-crore NPAs are likely to be upgraded to standard in 2018-19.

“We do not see any stress in these loan assets of ₹59,000 crore affected due to Reserve Bank norms and these are likely to turn standard over the next few years,” PFC Chairman and Managing Director Rajeev Sharma told reporters.

In a presentation explaining the position of NPAs worth ₹59,304 crore, PFC said all these are 100 per cent government-owned companies. Further, these companies have demonstrated a 100 per cent recovery rate in FY17, and none of the borrower accounts have ever been declared NPAs. PFC also noted that the Ratnagiri Gas-based power project is a joint venture facing fuel supply issues.

PFC is also going to realign its lending portfolio to focus more on transmission, renewable energy and last mile distribution infrastructure. The reason is the slacking demand for thermal power and rising NPAs in the sector.

The company envisages an investment of ₹12 lakh crore in the power-for-all scheme. In addition, the retrofit of existing thermal units for becoming energy efficient and refinancing of old projects will be priority sectors, according to Sharma. Power transmission projects awarded through tariff-based competitive bids will be eligible for loans.

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Published on June 07, 2017
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