Power Sector is Still Waiting for a Workable Solution to its Troubles

• A review of the report by a panel of MPs on the impact of RBI's revised framework for resolution of stressed assets on NPAs in the electricity sector suggests that it is time to panic.
• The report states that nearly 60,000 MW to 65,000 MW of coal based thermal power capacity is under financial stress.
• The report is a step in the right direction as far as diagnosing the problem is concerned, but it stops short of providing solutions.

It is my professional opinion that now is the time to panic!" so said a TV pundit in the 2001 Pixar hit Monsters Inc when a child was spotted walking around in Monstropolis.

This just about rings true after reviewing the 40th Report submitted by the Joint Parliamentary Committee on Energy on "the Impact of RBI's Revised Framework For Resolution of Stressed Assets on NPAs in the Electricity Sector" ("Committee Report"), that was released on August 7, 2018.