Govt Allocates Rs 88500 Cr to Incentivised EV Infrastructure and Curtail Pollution

The government has announced that out of the allotted budget, a majority of the lump (nearly 95%) would be used for restriction sulphur emissions from power plants, and the rest will be employed to develop electric vehicles infrastructure in 70 cities in the five years ending 2025, the declaration further added.

The move has come from the authorities after a recent report by ASSOCHAM-Grant Thornton joint study discovered that investments worth over Rs 2.5 lakh crore in thermal sector projects, based on domestic coal, imported coal, and gas, are facing strain and instantaneous remedial measures need to be undertaken to safeguard that they are revitalized in a time-bound manner.

The power sector has been under tension with loans worth Rs 1 lakh crore having turned bad or been recast.

“As per the recent estimates, about 66,000 MW capacity is facing various degrees of financial stress including 54,800 MW of coal-based power, 6,830 MW of gas-based power and 4,570 MW of hydropower with lenders having an exposure of Rs 3 lakh crore to these assets,” supposed the study.

“Non-availability of regular fuel supply arrangements, lack of power purchase agreements, the inability of promoters to invest equity and working capital, and regulatory and contractual issues are some of the major challenges faced by thermal power projects.”

The report quoted and highlighted that there is no collective solution for these unwell power assets and a mixed multi-pronged approach needs to be embraced instead of a straight-jacketed approach.

Incentives worth Rs 50 Crores in the pipeline for EV infrastructures “This has to be done as there are not enough takers for all of these stressed assets and any unthoughtful action may result in huge credit recovery losses for the banks and financial institutions,” assumed the study.

The Indian government has now amended the Insolvency and Bankruptcy Code (IBC) four times since its enactment in 2016, the government is eager to revise it further to make it stronger and effective. “This is considered imperative to provide an effective solution to thermal power projects.”