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PFC to close resolution plans of 5 stressed assets in 1 month: CMD

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Press Trust of India New Delhi
Last Updated : Sep 12 2018 | 4:35 PM IST

Power Finance Corporation said Wednesday the worst was behind for stressed power assets and it would finalise resolution plans with five struggling projects with an exposure of Rs 8,254 crore in one month.

The state-run company said it had been working with other lenders of these projects for resolution.

The company would benefit from the Supreme Court's interim relief to stressed assets till November 11, 2018, from insolvency proceedings, Power Finance Corporation (PFC) Chairman and Managing Director Rajeev Sharma told reporters.

"Worst is behind us. We may close the deal for five such projects in next one month. Five projects with our exposure of Rs 8,254 crore are in advance stage of resolution," Sharma said.

He listed GMR Chhattisgarh, Jhabua Power and KSK Mahanadi where discussions with H1 (highest) bidders were underway to close the deals.

Similarly, one-time settlement offers by managements of Indiabulls Amaravati and Essar Mahan were under finalisation, he said further.

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Sharma said that lenders have made significant progress towards resolution in two projects -- Indiabulls Nasik and RKM Powergen (Stage I and II). The company has exposure of 8,156 crore in these two projects.

In case of Indiabulls Nasik, the takeover by state government (Maharashtra) is being pursued. The restructuring process is underway in case of RKM Powergen. It was declared L1 (lowest bidder) for 550MW in the recently concluded bids for pilot power purchase agreement scheme for stressed assets.

Sharma said, "The deadline for filing in NCLT for large borrowers was to get over on September 11, 2018 ... the Supreme Court has stayed the NCLT filing requirement under the RBI Circular. We are therefore continuing with the resolution process to close them at the earliest."

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First Published: Sep 12 2018 | 4:35 PM IST

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