No concrete proposal to set up equity fund for stressed power projects
1 Aug 2014 6:11 AM IST
The government on Thursday said there is no ‘concrete’ proposal for setting up of an equity fund or asset reconstruction firm for stressed power projects although the issue has been discussed with banks.
‘While there is no concrete proposal at this stage for setting up of an equity fund/asset reconstruction company (ARC)for the stressed power projects, the proposal was discussed in the meeting held on 23 June, 2014 with the banks and financial institutions,’ Power and Coal Minister Piyush Goyal said in a written reply to Lok Sabha.
He further said ‘the Department of Financial Services has since informed that SBI has been requested to examine the proposal further.’
Last month, Financial Services Secretary G S Sandhu had said that there was a proposal to create an ARC where some of these banks and the power companies can join hands and can set up a company that would revive incomplete projects and hand it over back to the promoter after revival. In order to boost the power sector in the country, Goyal said that the government has taken various steps including expeditiously resolving issues relating to environmental and forest clearances for power projects under implementation.
The government also expedited generation capacity addition during 12th Plan with a proposed target of 88,537 MW from conventional sources and about 30,000 MW from renewable energy sources.
‘While there is no concrete proposal at this stage for setting up of an equity fund/asset reconstruction company (ARC)for the stressed power projects, the proposal was discussed in the meeting held on 23 June, 2014 with the banks and financial institutions,’ Power and Coal Minister Piyush Goyal said in a written reply to Lok Sabha.
He further said ‘the Department of Financial Services has since informed that SBI has been requested to examine the proposal further.’
Last month, Financial Services Secretary G S Sandhu had said that there was a proposal to create an ARC where some of these banks and the power companies can join hands and can set up a company that would revive incomplete projects and hand it over back to the promoter after revival. In order to boost the power sector in the country, Goyal said that the government has taken various steps including expeditiously resolving issues relating to environmental and forest clearances for power projects under implementation.
The government also expedited generation capacity addition during 12th Plan with a proposed target of 88,537 MW from conventional sources and about 30,000 MW from renewable energy sources.
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