Government sets up panel to address NPAs in the power sector

The central government has set up a panel to tackle the problem of stressed power assets in the country. The committee is headed by Amitabh Kant, NITI Aayog, and comprises secretaries of the Ministry of Power, the Ministry of Coal and the Department of Financial Services. It is estimated that NPAs in the power sector currently account for 5.9 per cent of the banking sector‘s total outstanding advances of Rs 4.73 trillion. Earlier, the Department of Financial Services had identified 34 stressed coal-based power projects with an estimated debt of Rs 1.77 trillion which have been reviewed by the government. The issues faced by these projects include a lack of funds, power purchase agreements and fuel security.