Govt close to reconciling stalled power projects

Govt close to reconciling stalled power projects

The government is close to solving issues about loans for some of the stalled power projects, mainly in thermal and hydro sectors, Power Minister Piyush Goyal said on Monday.

The ministry officials are in talks with all stakeholders, including banks, financial institutions and state governments,  to kick-start the stuck projects. Goyal said the government is close to resolving issues about projects where developers are not wilful defaulters or where no significant irregularities are found.

By addressing the bad loan issues of stalled power projects, the government is also discussing with banks on how to restart its functioning, the minister added.

There is also a proposal before the government to grant interest subvention of about 4 % to the developers to help them turnaround stalled hydro projects.

Industry estimates put the total value of stressed assets at around Rs 1.6 lakh crore. it is estimated that 11,639 MW of hydro electric plants and 23,361 MW of thermal power projects stopped functioning due to various reasons.
Goyal said he has already instructed the ministry of new and renewable energy to bring out the improvised version of bio-gas plants so that Gau Shalas can have separate bottling unit to improve upon their income.

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