Panel set up to look into power sector woes

NEW DELHI: The finance ministry has set up a committee to look into the woes of the power sector which will give its report within the next two weeks. The committee, headed by India Infrastructure Finance Ltd (IFFCL) chairman SB Nayar, will examine the concerns raised by power companies on mounting debt due to stalled projects.

"We have discussed about gas-based, coal-based power projects and projects which are held up because of last mile financing," said financial services secretary GS Sandhu after a meeting between bankers and private sector power producers.

As much as Rs 5 lakh crore investment is stuck in power projects due to various reasons including raw material shortage. Sandhu said the coal ministry will auction coal blocks that have been cancelled recently by the apex court within three months.

"That is what coal ministry have informed us — three months that it will go to auction," he said.