Stressed power asset resolution slow, says Icra

Despite various measures taken by the government and lenders, the resolution of stressed thermal assets remains slow, research firm Icra said on Wednesday. “Only about 10% of the 40 GW stressed coal-based capacity (is) achieving resolution, mainly through acquisition by a new sponsor,” Icra noted.

Regulatory delays, limited progress in signing new power purchase agreements and subdued thermal capacity utilisation levels have been attributed to the slow progress. Regulators directing new owners to reduce existing tariffs for electricity generated from power plants has also been cited as a roadblock to stress resolution.