Finance Ministry takes stock of stalled power projects
The finance ministry has taken stock of stalled power sector projects in an effort to fire the ones that are stuck only because of financing issues. In a meeting held in Delhi on Wednesday, senior officials of the ministry also discussed the case of state electricity boards where lenders have an exposure of around Rs 53,000 crore, which may turn into bad loans as the moratorium for repayment of principal has ended.
“We will take a holistic look at the sector-specific issues. However, the idea is to push those projects which are lowhanging fruits and where issues can be resolved quickly,” said a finance ministry official, requesting anonymity. As on March 2015, around 32,000 megawatt of power projects were stuck on account of fuel linkages, according to government data. The gross non-performing assets of state-run banks in the energy sector increased to 1.7% at the end of March 2015 from 1.1% the same time ..