The Union Ministry of Power has told state-owned power generation companies to look at the option of acquiring stressed power assets under the insolvency process and has listed Coastal Energen’s 1,200 MW imported coal based project in Tamil Nadu among the potential asset.
The stressed power projects mainly face challenges like inadequate capital investment, shortage/disruption in coal supply and fuel supply agreement issues, inadequate working capital funding and prolonged recovery of receivables under power purchase agreements, it noted in a recent communication to Power Secretaries of All States and Chiefs of State and Central power generating companies.
