With the possibility of nearly 16,000 MW generation capacity getting stranded in the absence of assured coal supply leading to losses for banks that have financed them,the finance ministry has convened a meeting of banks to evaluate their exposure to power projects. Participating in a meeting of an inter-ministerial committee constituted to iron out the hurdles in ensuring pooling of imported and domestically-produced coal prices on March 14,senior finance ministry officials said according to their preliminary findings,the scheduled commercial banks (SCBs) have sanctioned loans worth around Rs 34,000 crore for nine power projects of which Rs 17,000 crore has been disbursed. In the case of 11 projects,about Rs 30,000 crore has been sanctioned of which Rs 15,000 crore has already been disbursed. In a bid to evaluate the situation and iron out the issues affecting returns on investment,the department of financial services (DFS) has convened a meeting with bank heads later this week. Top officials from Coal India and Central Electricity Authority have also been asked to be present in the meeting. The CMDs have already been provided a questionnaire on how to alleviate the problems impacting the projects coming up without any firm assurance on coal linkages. In the meeting we expect them to give their opinion a senior coal ministry official said. The inter-ministerial panel headed by coal secretary SK Srivastava also wants the department of financial services to suggest what relief could be extended to the upcoming 16,000 MW capacities. The finance ministry is keen that they should be extended fuel supply agreements and giving them price-pooled coal.
