"Non-performing assets (NPAs) in power generation accounted for around 5.9% of the banking sector’s total outstanding advances of Rs4.73 trillion", said Economic Survey 2016-17To tame this devasting NPA issue in power sector the government of India and framed a high-level committee headed by NITI Aayog chief executive Amitabh Kant
The committee has already had its first meeting. Secretaries from ministries of coal, power and financial services were present at the meeting
Estimated Debt
A total of 34 coal-fuelled power projects, with an estimated debt of Rs1.77 trillion, have been reviewed by the government.
These projects faced the issue of paucity of funds, lack of power-purchase agreements (PPAs), and absence of fuel security.
What was found in the investigation?
Around 58 percent, or around 1,93,426 MW of the power generation sector is fueled by coal.
India's installed power generation capacity stands at around 3,31,118 MW. Gas-based and hydropower projects account for 25,150MW and 44,765MW, respectively.
The government is planning to find out whether private developers have inflated project costs to show higher debt
