The Centre will Wednesday discuss with lenders, including PFC, issues related to 'Pariwartan' scheme under which the government plans to warehouse stressed power projects to protect their value.
The Centre will Wednesday discuss with lenders, including PFC, issues related to ‘Pariwartan’ scheme under which the government plans to warehouse stressed power projects to protect their value. Power Asset Revival through Warehousing and Rehabilitation (Pariwartan) scheme looks to warehouse around 25,000 MW stressed projects under an asset management company in a bid to protect their value and prevent them from distress sale.
“There are some issues in that scheme (Pariwartan) which needs to be discussed,” Power Secretary A K Bhalla said here. He was speaking to reporters on the sidelines of Coal Summit organised by India Energy Forum. “There are some concessions that are needed from RBI like upfront valuation of the stressed assets,” he said. According to official sources, Power Minister R K Singh will chair the meeting.
A Parliamentary panel had earlier recommended new framework for resolution of stressed assets in power sector saying RBI’s framework, brought in February, “addresses only financial issues, ignoring the whole range of vital issues of electricity sector”. The RBI framework laid down strict timeline after which insolvency proceedings are to be initiated. It terms even a one-day delay in debt servicing as default.
Banks are required to ensure resolution plans within 180 days after default. It covers debt exposure of Rs 2,000 crore or more. The Centre has already recommended extension of the deadline by another 180 days in its submission before Allahabad High Court earlier this month.
Underlining that the stressed thermal power assets are a cause of concern for the country, the government had earlier said it would set up a high-level empowered panel to resolve the issues and revive such assets.