Is Insolvency the New Normal?
India's power sector is back in action again, however for all the wrong reasons. In February, India's federal bank tightened the norms for settling a bad debt by setting timelines for resolving Non Performing Assets (NPA) within 180 days for as many as 80 large borrowers.
The Stress Marks!
India's power sector is in a catch-22 situation. A sound analysis of the power sector affirms that the sector is in the ICU where 78,000 MW of projects are under stress; and approximately Rs 1,200 billion worth unviable projects and PPAs are signed for a mere 7,000 MW.
Problem of Plenty
India has become a power surplus nation, albeit with certain caveats. In its wake, it has changed the whole paradigm of generation sources, with solar and wind hogging the spotlight and coal being relegated a bit.
Technology and innovation will continue to be the catalyst
Aligned with the´Make in India´ initiative and the government´s green commitments, we aim to install 20 GW in the next six years. This is more than our installations till date but, is well within reach. We have established a multi-prolonged strategy that covers R&D, manufacturing and design as we endeavour to meet our goals.
The Long Shot
Wind energy has been identified as a potential response to India´s crucial power challenges since the 1990s. The sector has undergone a major shift in India, and even after a good 25 years, we still await the full potential of this renewable source to be realised.
AP to issue securities worth Rs.8,256 crore under UDAY
The Andhra Pradesh government has proposed issuance of special securities worth Rs.8,256.01 crore under the UDAY scheme. The securities will have a face value of Rs.100 issued in equal strips with a maturity at the end of 10th, 11th, 12th, 13th, 14th and 15th year, the RBI said in a statement.
AP to issue securities worth Rs 8,256 crore under UDAY
The Andhra Pradesh government has proposed issuance of special securities worth Rs 8,256.01 crore under the UDAY scheme. The securities will have a face value of Rs 100 issued in equal strips with a maturity at the end of 10th, 11th, 12th, 13th, 14th and 15th year, the RBI said in a statement.
Lenders rejig Rajahmundry Energy project debt
GMR Rajahmundry Energy Ltd has announced its strategic debt restructure with lenders taking 55 per cent of the equity as per the RBI norms. As per the scheme, of the total outstanding debt, including overdue interest of Rs.3,780 crore, debt of Rs.1,414 crore has been converted into equity by which the consortium of lenders would have 55 per cent shareholding.
The Cash Crunch
Public sector banks in India are staring at humongous piles of bad debts, delinquent loans are rising unabated. Ballooning bad debts have caused 10 Indian state-owned banks to report losses of a whopping Rs.153 billion for the March, 2016 quarter. India Ratings, a Fitch associate, estimates that 21 per cent of the total bank credit is stressed.