GOVERNMENT OF INDIA

MINISTRY OF POWER

LOK SABHA

UNSTARRED QUESTION NO.3870

TO BE ANSWERED ON 08.12.2016

SHARE OF POWER SECTOR IN BANKS' NPAs

3870. SHRI ANANTKUMAR HEGDE:

Will the Minister of POWER be pleased to state:

(a) whether the power generation sector had 12.39% share in the NPAs of banks during December, 2015 which has increased in June, 2016;

(b) if so, the facts thereof and the percentage of said increase in June, 2016;

(c) whether the Union Government has ascertained the reasons for increase in power sector's share of NPAs; and

(d) if so, the details thereof?

A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER,

COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI PIYUSH GOYAL )

(a) to (d) : No, Madam. The share of Power Generation Sector in the Gross Nonperforming Assets (GNPAs) of Scheduled Commercial Banks (SCBs), as on December 2015, was 4.54%, which has decreased to 4.38% in June, 2016, as indicated below:

(In Rs crore) Period as on Gross NPAs Power generations GNPAs Share of Power Generation - GNPAs in Gross NPAs (in %)

31-Dec-2015 4,36,883 19,831 4.54

30-Jun-2016 6,15,429 26,967 4.38 

The Financial Stability Report (June-2015) released by the Reserve Bank of India (RBI) has highlighted some of the major problems in power sector as under:

 Fuel availability / linkages

 Project clearances

 Social activism

 Aggressive bidding in coal block auctions by power producers resulting in lower plant load factors (PLF).

 Dependence on imported coal which is more expensive.

 Poor financial health of State DISCOMs.