Stressed power assets escape insolvency noose, but uncertainty remains

There are about 10 plants totalling 10 Gw, which are incomplete and are highly unlikely to find a buyer

Stressed assets in the power sector escaped insolvency under the new Reserve Bank of India circular but uncertainty still remains for those assets where debt resolution processes are underway. 

Lenders have a cumulative exposure of roughly Rs 2 trillion to stressed assets in the power sector. Of the 30 identified stressed power projects, a dozen are in the National Company Law Tribunal (NCLT) for insolvency. For seven projects, the resolution process is going on outside the Insolvency and Bankruptcy Code. 

A senior executive in the Power Finance Corporation (PFC) said they have submitted three projects in the NCLT afresh, including two thermal