Summary

Thermal power assets continue to reel under financial stress given tepid growth in power demand, issues in domestic availability of coal, delayed payment from discoms, protracted arbitrations, and pressure on offtake due to availability of renewable energy.

This stress has trickled to the banking system, shoring up non-performing assets.

The RBI’s directive to banks to trigger the NCLT process for financially stressed projects was quashed recently by the Supreme Court – a move that will force banks to go back to the drawing board, but will give them greater flexibility for resolving these cases.

Some green shoots are also visible, centred on tendering of medium-term PPAs, retirement of old plants, and revision in the coal escalation index.

Overall, this is an opportune time for the government to implement stout measures to address the core sectoral issues.

Against this backdrop, we invite you to a web conference titled 'Destressing thermal power’, where experts from CRISIL Infrastructure Advisory will address the following points:

• Are short-to-medium term PPAs the new normal?
  
• How can payment security related issues for IPPs be addressed?
  
• How can coal for all help alleviate input-related risks?
  
• What other measures can be implemented by the government to alleviate stress in thermal power projects?
  

The presentation will be followed by a panel discussion with senior industry leaders and a Q&A session.