The power sectorgas, hydro and windaccounts for about one-third of the total assets sold. Non-availability of gas and coal had stymied the sector and companies saw their debt piling up in the last two years. A report by Standard Chartered highlights that asset sales have brought about a meaningful reduction in debt of the power business of the Jaypee group. However, for most companies, leverage will still remain high after the sale of assets.
The report points out that while there is demand for operational road assets, the demand for many assets remains weak, especially in thermal power, small steel plants and telecom sectors. Thermal power, which is the most stressed sector, has few takers because of lack of availability of coal.