The spectre of losing power

Posted On : August 25, 2018

The power sector in India is in a state of flux at the moment, with many challenges facing it. On the financial side, a Standard Committee on Energy reported last year that non-performing assets (NPAs) in the sector has reached over Rs 37,941 crore; a big worry for banks and investors. Apart from this, the non-availability of fuel (coal/natural gas), the inability of the promoter to infuse equity and working capital, and lack of enough power purchase agreements (PPAs) by states have contributed to the crisis. Currently, thermal power plants contribute 66 per cent of the electricity consumed in India, and the fact that a large chunk of stressed assets is from the thermal sector is a big worry.