The Ministry of Power (MoP) has introduced the “Trust Retention Account” (TRA) for certain stressed power plants to utilise their surplus after meeting operating expenses for servicing debt. As per the MoP’s order, in case the developer uses coal linkages under the amended SHAKTI policy, the TRA must be put in place, if it is not in place already. All the revenue generated will be deposited to the TRA and the lead banker will act as a TRA agent. The companies will first make statutory payment (taxes), meet fuel costs, transmission expenses, operation and maintenance expenses, and then pay the interest on loans and make the principal payments. The MoP’s order is in line with the recommendations of the high level empowered committee constituted to address the issues of stressed power assets.