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    Power sector needs strong hands to buy stressed assets, says power secretary SC Garg

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    Power sector needs strong hands to buy stressed assets, says power secretary SC Garg

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    Power sector needs strong buyers for the assets. That's the view coming in from power secretary SC Garg, who spoke to CNBC-TV18 about the current state of affairs in the debt-ridden power sector and shared outlook.

    Power sector needs strong buyers for the assets. That's the view coming in from power secretary SC Garg, who spoke to CNBC-TV18 about the current state of affairs in the debt-ridden power sector and shared outlook.
    “Power sector, to my mind, need strong buyers for the assets. A little bit of sickness in the sector has created a situation where the buyers are also not as many as you would expect in a competitive market,” said Garg.
    According to Garg, the letter of credit (LC) rule enforcement has taken care of current dues.
    “All the suppliers now have LCs; if they do not get paid they will be able to get their payment through LC mechanism ... As far as the current dues are concerned, the mechanism has succeeded in achieving its objective,” Garg said.
    Talking about the PRAAPTI portal, he said, “Those are the arrears. We will have to deal with those arrears as well. Let it stabilize current issue and then the arrears issue will also be resolved. We are clear that every unit of power which is purchased by the Discoms has to be paid for and those arrears will also be resolved.”
    About coal mining, Garg said, “The government has passed the necessary legislation to introduce commercial coal mine in the country. The law is there – that’s one and second we do have coal shortage in the country, still a large quantity of coal is imported. So these 2 things need to be used to resolve the problem.”
    “Therefore, going forward we should have much more production of coal in the private sector using the commercial mining which has been done,” he added.
    According to him, the country needs to resolve its high dependence on imported coal.
    "Domestic coal production needs to be increased," said Garg.
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