Kolkata, Feb 10: Investments worth over INR2,50,000 crore in thermal sector projects (based on domestic coal, imported coal and gas) are facing stress, and immediate remedial measures need to be undertaken to ensure that they are revived in a time-bound manner, noted a recent ASSOCHAM-Grant Thornton joint study.
The study also noted that country’s power sector has been one of the highly stressed sectors in recent times, with loans worth approximately INR1,00,000 crore having turned bad or been recast.
“As per the recent estimates, around 66,000 MW capacity is facing various degrees of financial stress, including 54,800 MW of coal-based power, 6,830 MW of gas-based power and 4,570 MW of hydropower with the lenders having an exposure of around INR 3,00,000 crore to these assets, which is alarming, to say the least,” noted the ASSOCHAM-Grant Thornton study titled, ‘Stressed assets in the Indian thermal power sector.’
“Non-availability of regular fuel supply arrangements, lack of Power Purchase Agreements (PPAs), inability of promoters to invest equity and working capital, and regulatory and contractual issues are some of the major challenges faced by thermal power projects,” according to the study.
The report cited that there is no universal solution for these ailing power assets and a mixed multi-pronged strategy needs to be adopted instead of a straight jacketed approach.
“This has to be done as there are not enough takers for all of these stressed assets and any unthoughtful action may result in huge credit recovery losses for the banks/FIs (financial institutions),” it added.
While the Insolvency and Bankruptcy Code (IBC) has already been amended four times since its enactment in 2016, the government is willing to amend it to make it stronger and effective. “This is considered imperative to provide an effective solution to thermal power projects.”
Further, an effective resolution in a time-bound manner is warranted by improving the macro environment governing the power sector, said the report.
This would involve augmenting coal supplies under the Scheme for Harnessing and Allocating Koyala (coal) Transparently in India (SHAKTI) and medium-term/short-term power procurement by DISCOMs to alleviate the sub-optimal plant load factors (PLFs), it stated.
It would also require improvement in operations besides National Investment and Infrastructure Fund (NIIF)/NTPC led resolutions among others, further said the ASSOCHAM-Grant Thornton report.
Customers purchasing building materials of Indograce Emart can select through online
Thiruvananthapuram, Feb 10 (UNI) Customers purchasing building materials of Indograce Emart can now select them through online of their choice in a hassle-free and speedy manner.
Thousands of products such as steel, cement, iron bar and paint have been made available to customers, supported by advanced technologies like artificial intelligence and virtual reality.
Indograce Emart’s website www.indograce.com allows comparison of quality and prices for the convenience of buyers online.
Huge discounts are also available. Mobile app of the Emart can be downloaded from play store. Apart from offering a broad range of facilities online, Indograce is also making ready Building Material Hubs for customers who want to have the physical feel of products.
The first hub is to come up near Technocity, Thiruvananthapuram in one lakh square feet. Similar hubs are planned at Ernakulam, Kottayam, Kozhikode and Malappuram at an estimated cost of Rs. 100 crore.
"Agreements have been entered into with over 150 companies making various brands of each product," Ms Sabeer, Founder and Managing Director, Indograce Emart, said in a release on Sunday.
Required materials listed by contractors or electricians can be uploaded online to Indograce Emart. M.S. Sabeer remarked that quotations for the same and various options to make payments would be available.
Along with the expansion of online services, efforts are afoot to offer the initial shares of the company through private placement.
Company sources alluded that the investment move is aimed at leveraging Indograce’s achievements as a technology company coupled with the forward development in the building materials manufacturing sector.
Indograce Emart has established various projects to bring sellers the advantages of having their products available to customers around the world.
Manufacturers, wholesalers, dealers and distributors can make their product available on Indograce Emart. Indograce has a technological system in place to reach benefits offered by sellers to customers. (UNI)