Slow progress on stressed power assets; only 10% capacity resolved: Icra

Progress on stressed thermal power asset resolution remained slow as only 10 per cent of affected generation capacity witnessed resolution despite several steps taken by the government and lenders, ICRA said on Wednesday.

Thermal power plants PLF (plant load factor or capacity utilisation) levels remain subdued with the increasing renewable generation and modest demand growth, said ICRA in a statement.

The resolution of stressed thermal assets remains slow despite various measures undertaken by the government and lenders, with only about 10 per cent of the 40 GW stressed coal-based capacity achieving resolution, mainly through acquisition by a new sponsor, it said.

The balance capacity is under various stages of resolution, including through Insolvency and Bankruptcy Code (IBC).