(ET)
State Bank of Indiais preparing a major debt restructuring and takeover plan for stressed power assets, to improve valuations and attract new owners with incentives and a quick resolution process. The country’s largest lender has called all power plant lenders in Mumbai on Wednesday for discussing a proposal that has a direct bearing on loans adding up to Rs 1.77 lakh crore in 75,000 MW stressed capacity. It has also asked the power ministry to waive transmission transmission penalties and grant early regulatory approvals to help new promoters, said a senior government official.
The bank proposes to get debt of the stressed assets rated by credit rating agencies. The plants will then be valued as per ratings at a sustainable debt portion, a banking official said. The projects will be offered to the National Investment Fund (NIF).
