34 private sector power plants are under ‘stress’ : Power Ministry
New Delhi: The ministry of Power has listed as many as 34 coal based Thermal Power Plants, mostly in the private sector, with combined capacity of 40,130 MW as ‘stressed’. Out of the 34 projects, 11 projects with combined capacity of 13,330 MW are partially commissioned and have been referred or admitted under NCLT for resolution.
“Department of Financial Services had provided a list of 34 coal based Thermal Power Projects, mostly private, totaling to 40,130 MW which were considered ‘Stressed’ by Ministry of Power on March 22, 2017. Out of which 20,440 MW capacity comprising of seventeen (17) projects which are mostly commissioned and have been resolved/ likely to be resolved and/ or serving their debt and/or are not in NCLT. Eleven (11) Projects are only partially commissioned and have been referred to or admitted under NCLT waiting for resolution with a capacity of 13,330 MW. Six (6) projects are at very initial stage of construction are totally stalled, and have either been ordered to be liquidated or are heading towards liquidation” the ministry has stated in response to a query by the Parliamentary Standing Committee on Energy.
Most of these projects are under severe financial stress due to reasons like coal supply issues, slow growth in power demand, delay in payments by Discoms, inability of the promoter to infuse equity and working capital, Regulatory and Contractual Disputes. Most of the projects are also facing issues like aggressive tariffs quoted by bidders in competitive bidding process and legal issues related to auctioned coalmines.