Resolution of stressed thermal assets slow: ICRA
The resolution of stressed thermal assets remains slow despite the various measures undertaken by the Government and lenders.
About 10% of the 40 GW stressed coal-based capacity achieved resolution, mainly through acquisition by a new sponsor, according to ICRA.
The balance capacity is under various stages of resolution, including through Insolvency and Bankruptcy Code (IBC). Further, the resolution of 12 GW gas-based capacity continues to remain uncertain, given the inadequate availability of domestic gas and absence of any policy measures for use of imported R-LNG with subsidy support as well as the measures to incentivize such projects to meet the peaking/ancillary power demand.
