PFC, REC may bid for stressed assets
The two dedicated power sector financiers Power Finance Corp (PFC) and REC Ltd are considering bidding for stressed power assets to prevent large haircuts on their loans during resolutions. The state-run companies propose to float a consortium of lenders and state-run power developers to acquire and operate such stressed assets, sources in the government said.
“The lenders have incurred large haircuts in the past resolution processes for even good projects, which are nearly commissioned, have power purchase agreements and assured coal supplies. The two companies are looking at bidding for the stressed projects during resolution,” a senior official said.
Another official said the companies are considering partnering with other central power sector entities for technical know-how to run the acquired projects.
