Govt constitutes high level empowered committee to revive stressed thermal power plants

The Government has decided to set up a high level empowered committee headed by cabinet secretary P K Sinha and representation from the ministries of railways, finance, power, coal and banks having major exposure to the power sector to revive stressed thermal power projects.

ET had on July 25 reported that the government may recommend more time for stressed power companies in the next hearing in Allahabad High Court on Aug 2 and is mulling setting up a high-level committee to address cross-sectoral issues including delayed payment of private power companies.

An official statement released on Sunday evening said the Committee would look into various issues with a view to resolve them and maximise the efficiency of investment including changes required to be made in the fuel allocation policy and regulatory framework.


It will also look into mechanisms to facilitate sale of power, ensure timely payments, payment security mechanism, changes required in the provisioning norms/Insolvency and Bankruptcy Code (IBC), Asset Restructuring Company regulations and other proposals for revival of stressed assets so as to avoid such investments becoming NPA, the statement said.