HomeEnergy NewsSome lenders join forces to rescue 14 stressed power assets

Some lenders join forces to rescue 14 stressed power assets

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By Niral Sharma  May 4, 2018, 3:13:11 PM IST (Updated)

State Bank of India-led lenders to some power companies have come together to rescue stressed assets of firms like KSK Energy and IndiaBulls.



The lenders have decided to float a fund to take over 14 such stressed power plants, reported The Economic Times.

The move is aimed at saving these power plants from liquidation, to better valuations and assure speedy resolution, ET report said, adding, the 'lead lender' has to invest Rs 10 crore and the co-lenders will bring equity on pro-rata basis.

According to the source quoted in the report, a meeting was held on Wednesday where the lenders decided to make investments as per their exposure in each power project.

Also read: Power: Is the blackout finally ending?

“The total debt will be divided into sustainable and unsustainable portions. The debt rated lower than RP4 will be unsustainable,” the source quoted by the paper said.

The lenders are looking to implement the scheme within three months.

Last Month, power secretary Ajay Bhalla said that some companies in the sector reeling under debt were already under the process of resolution and bankers were looking at whether a change of ownership can help to improve performance.

According to ET’s report, at present, more than 75,000 mw of power generating assets were severely stressed due lack of coal availability, lack of PPAs and delays in regulatory clearances.

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