Steps taken by the government and lenders to address the stress in the power generation sector are starting to show results, with as many as 11 coal-based projects with combined capacity of 12.7 giga watt (GW) finding resolution and going on stream over the last six months. Another six stuck projects (total capacity 7.8 GW) too, are seen coming out of the abyss soon.
Two government schemes — one to get the stressed projects assured customers through power purchase agreements with state distribution entities (discoms) and the so-called Shakti scheme to provide them with coal linkages — are principally behind the turnaround.
