Government close to resolving some bad power loans: Piyush Goyal
The power ministry, which is also working on reviving stalled hydro projects, already had extensive discussions with bankers and stakeholders.business Updated: Jun 12, 2017 13:44 IST
The government is close to resolving bad loans made in the power industry for companies that owe money and are not avoiding repayment on purpose, power minister Piyush Goyal told reporters on Monday.
“We are close to resolution of stressed thermal power projects soon where developers are not wilful defaulters,” Goyal said while speaking about three years of the government’s performance.
Bad loans in the power sector continue to weigh on India’s banks, and the government has been looking for ways to help ease the pain for companies struggling to service their debts.
Signalling the intent of the government, Goyal said the ministry is doing its job to revive stalled and stressed thermal and hydro power projects.
The power ministry, which is also working on reviving stalled hydro projects, already had extensive discussions with bankers and stakeholders.
According to sources, the ministry has firmed up a policy for stalled hydro projects to revive 11,639 MW by dispensing Rs 16,709 crore till 2024-25.
Additionally, the government has decided to provide interest subvention of about 4% to developers to turn around hydro projects.
The power ministry and the Niti Aayog, Goyal said, are jointly working on a policy for next 25 years to ensure energy security. He expects renewable energy capacity to surpass thermal power by 2022.
India is committed to create 175 MW of renewable energy capacity by 2022.