What steps have been taken by the Union Ministry of Power to address insolvent assets in the power sector
The Union Ministry of Power has recently urged central and state public-sector power-generating companies and state power departments to take up insolvent assets.
The Union Ministry of Power has undertaken several steps to address insolvent assets in the power sector:
- Encouraging power-generating companies and state power departments to acquire insolvent power plants or assets through mechanisms like the Insolvency and Bankruptcy Code.
- Facilitating the identification and resolution of stressed power assets through a high-level empowered committee.
- Providing financial support and assistance to struggling power plants through measures like the Power Finance Corporation’s (PFC) 'Scheme for Revival and Rehabilitation of Power Distribution Companies.'
- Promoting the sale of stressed power assets to ensure their revival and prevent them from becoming non-performing assets.
- Creating a transparent online portal, PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators), to track payments and address the issue of delayed payments to power plants, reducing their financial stress.
- Implementing the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) scheme to enhance demand for power and attract investments in the sector.
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