Decades of policy, regulation mismatch to haunt insolvency in power sector

The power ministry has identified 66 stressed power projects across coal, gas and hydro, against the finance ministry's list of 34 coal-based stressed projects

When the Allahabad High Court (HC) in its judgment observed that stress in the power sector is due to fundamental issues and not because of any circular by the Reserve Bank of India, it only depicted the sorry state of the sector, mismatched policies, and regulations of the past decade.

A high-powered committee (HPC) under Cabinet Secretary P K Sinha, set up to provide solutions for the prevailing issues in the sector, is expected to hold its first meeting on Friday. This committee has been directed by the Allahabad HC to devise a framework by September this year. 

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