Thermal projects of 16,000 MW may add NPAs
About Rs 35,000 crore worth 16,000 MW thermal power projects face the threat of turning into non performing assets (NPAs) in view of the decision of the Inter-Ministerial Committee (IMC) not to consider them under the price pooling formula of imported and domestic coal. The Rs Rs 35,000 crore spent on the projects has been borrowed from various banks. A majority of these power plants are scheduled to be commissioned during 2014-15 and have been recommended for tapering linkage by the Ministry of Power and Ministry of Coal and scheduled to come up during the 12th Plan. The fate of these projects, coming under option 4A and 4B of the IMC, hangs in balance as the Cabinet Committee on Investment (CCI) is likely to take a final view on the recommendations of the IMC at its meeting later this month. Some of the projects which have been recommended for price pooling formula by the IMC will only be commissioned in 2016-16, much later than the large number of projects which have been kept out of the new formula under the price pooling regime. Officials concerned said that a massive investments to the tune of Rs 80,000 crore have been made in these projects under option 4A and 4B. The bank exposure is around Rs 35,000 crore and if they are denied coal linkages, they will face the threat of turning into NPAs, the officials added.