Notwithstanding the recent ₹90,000-crore relief package for power distribution companies, aimed at providing liquidity and enabling payments to various Gencos, the country will have to brace up to addressing the issues relating to about 45-50 giga watt (GW) stressed thermal power assets.
The progress on stressed asset resolution has been slow till March 2020 due to long lead time to achieve a sustainable resolution, absence of new long-term power purchase agreements (PPAs) and subdued thermal plant load factor (PLF) levels.
According to Girishkumar Kadam, Sector Head & Vice-President, Corporate Ratings, ICRA, “Given the prevailing Covid pandemic, resolution of stressed assets is likely to slow down further, for majority of thermal assets which are impacted due to lack of long-term PPAs.”
