The government is exploring the possibility of floating an equity fund or an asset reconstruction company (ARC) for the stressed power projects in the country, Minister of State for Power, Coal & New and Renewable Energy, Piyush Goyal informed the Lok Sabha.
He said that there is no concrete proposal to float such a fund but the government had discussed it with banks and financial institutions in a meeting held on June 23, 2014.
State-run public sector lender SBI has been requested to examine the proposal further.
Last month, Finance Services Secretary GS Sandhu had said that the government is considering a proposal to create an ARC, wherein some of the banks and power companies will join hands to form the company, which will take over stalled power projects and help revive them.
Meanwhile, Goyal said that the government is taking steps to speed up the proposed power generation capacity addition target of 88,537 megawatt (MW) during ongoing 12th Plan from conventional sources and about 30,000 MW from renewable energy sources.
The government is also working towards resolving issues pertaining to environmental and forest clearances for power projects under implementation and bridging the gap of indigenous coal availability through coal imports for increased generation by thermal plants.
A massive programme for strengthening of inter-state and inter-regional transmission capacity for evacuation of power and bridging the gap of indigenous coal availability through coal imports for increased generation by thermal plants is also undertaken, he added.
Besides, the government had announced a scheme in the Budget 2014-15 for strengthening of sub-transmission and distribution networks and for segregation of agricultural feeders.
This is in addition to the existing scheme of Restructured Accelerated Power Development Reforms Programme (R-APDRP), under which upgradation of existing distribution networks is taken up in collaboration with states.
(Edited by Joby Puthuparampil Johnson)
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