Progress on stressed thermal asset resolution remains slow with only 10% of affected capacity resolved: ICRA

KOLKATA: Resolution of stressed thermal assets remain slow despite various measures undertaken by the government and lenders, with only about 10% of the 40 GW stressed coal-based capacity achieving resolution, mainly through acquisition by a new sponsor, analyst firm ICRANSE 0.41 % has deduced.

In a report on the sector, ICRA said that the balance capacity is under various stages of resolution, including Insolvency and Bankruptcy Code (IBC). However, resolution of 12 GW gas-based capacity continues to remain uncertain, given the inadequate availability of domestic gas and the absence of any policy measures for the use of imported R-LNG with subsidy support as well as the measures to incentivize such projects to meet the peaking / ancillary power demand.