Friday, March 9, 2018

Power is a stressed sector for entire banking space, says SBI

Mumbai, March 8:  The power minister has said that State Bank of India is "worried" about its exposure to the Mundra power projects of both Adani Power and Tata Power. He also went on to express concerns over stressed assets in the power sector as a whole. In an interview to CNBC-TV18, Sunil Srivastava, Deputy MD of SBI spoke about the same.

Srivastava said that power is a stressed sector for the entire banking sector. He further said that there is a problem related to distribution and DISCOMS' (Distribution Companies) health. “Addressing these issues in a short possible time of six months is going to be very-very difficult,” said Srivastava.

According to him, there are 34 thermal power plants under stress. DISCOMS looking at buying cheap power over exchange than honouring their contract, he added.

Srivastava also mentioned that Central Electricity Regulatory Commission (CERC) is taking time in revising tariffs. There are still a few power plants that could be classified as non-performing assets (NPAs). However, not all gas-based power plants are under stress, he said.

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