Lenders tear into power regulator, tribunal over backlog

Banks and financial institutions lending to the power sector have raised concerns over the delay in the disposal of petitions by the central electricity regulator and the tribunal, saying that it has resulted in revenue shortfall for the developers, which, in turn, has impacted their ability to service debt.

In a meeting with power minister Piyush Goyal on stressed assets in the sector earlier this month, the lenders including the State Bank of India, IDBI, Axis Bank and ICICI Bank pointed out the role of the Central Electricity Regulatory Authority (CERC) and the Appellate Tribunal for Electricity (Aptel) in causing inordinate delays faced by developers even in routine matters.

The banks, in their exposure to the power sector, are facing non-performing assets (NPAs) to the tune of nearly R3 lakh crore and believe that further delay could push more projects into the NPA category.


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