The government is "very close" to firming up a resolution mechanism for stressed and stalled thermal as well as hydro power projects, Power Minister Piyush Goyal said today.
According to industry estimates, there are stressed and stalled hydro and thermal power project of over 35,000 MW including 11,639 MW hydro electric plants. Experts put the value at over Rs 1.6 lakh crore.
"We have had very extensive engagements with all the stakeholders particularly bankers and financial institutions like REC and PFC...States and other government departments", Goyal told reporters here while speaking about the government performance in the last three years.
"We have come very close to resolution mechanism for at least those stressed power plants where the promoters are not found to be wilful defaulters or where do not find significant irregularities," he said.
Bankers are taking pro-active measures to take over such plants which have defaulted and the power ministry is working with the lenders to find a win-win solution, he said, adding that the final beneficiary of this would be consumer.
"We would love to resolve stress in the stalled hydro power project also. Going forward, we have asked state governments that if they take over the stressed power plants or the bankers take over the plants then we can look into finding solutions to resolve hydro projects, also keeping in mind the economic viability of these projects," he said.
The power ministry, which is also working on reviving stalled hydro projects, already had extensive discussions with bankers and stakeholders.
According to sources, the ministry has firmed up a policy for stalled hydro projects to revive 11,639 mw by dispensing Rs 16,709 crore till 2024-25.
Additionally, the government has decided to provide interest subvention of about 4 per cent to developers to turn around hydro projects.
Goyal further said: "Assam and Arunachal Pradesh have decided to start work on Subansiri hydro power project. There was hearing in National Green Tribunal on May 25. The NGT order is expected in few weeks."
About stressed Damodar Vally Corporation's Raghunathpur thermal power project, he suggested that West Bengal government should allow selling of this project or brining it under the public private partnership mode to revive that.
On renewable energy the minister said that India's installed capacity will surpass thermal power by 2022.
He said if Rajasthan waives transmission charges on renewable energy then there could be more investment in clean energy, particularly solar as heat radiation is quite good in the state.
The power ministry is working with NITI Aayog to draw a new Energy Policy for next 25-30 years focusing on energy security and right energy mix in future.
Goyal said he has already instructed the ministry of new and renewable energy to bring out the improvised version of bio-gas plants so that Gau Shalas can have separate bottling unit to improve upon their income.
Disclaimer: No Business Standard Journalist was involved in creation of this content
