Distressed Thermal Power Plants in India:
Acquisition Opportunities
With a myriad of issues and challenges facing the power sector, many power projects in the
country have either been shelve...
Scope of Research Work
Consider requesting a custom research proposal – Contact piyush.arora@infraline.com
Research Approa...
Foreword
Executive Summary
1. Power Generation in India: An Overview
1.1 Key Policies and Regulatory Framework
1.2 Progres...
Payment Options for the Report
Report Price INR 30,000 (Hard Copy)
INR 45,000 (E-Copy – Single User License)
INR 90,000 (E...
For more details, visit http://www.infraline.com/Store/Books-and-Reports.htm
Infraline Knowledge Tower, A-31 Sector -3 Noi...
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Distressed Thermal Power plants in India

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Key investors feel India’s medium-long term growth story is intact & continued investments in the power sector are inevitable for sustainable levels of economic growth. In the given business environment, distressed power projects offer some attractive investment opportunities to acquire capacity, rather than going in for green field investments. It is in this context we expect significant power assets sale and ownership changes across the power generation segment. It is with this perspective, InfralineEnergy has come out with research study on “Distressed Thermal Power Plants in India: Acquisition Opportunities”. The major focus of the work would be on identification of distressed thermal power projects in India and mapping of various key issues responsible for such situation. Besides this, the report also highlights the potential opportunities for investors and the systemic challenges that can arise in case of ownership transfer, under the current policy, regulatory and legislative framework in India. For further details http://www.infraline.com/Reports.aspx?id=273&tlt=Distressed-Thermal-Power-plants-in-India&sl=Business%20Report%20Series

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Distressed Thermal Power plants in India

  1. 1. Distressed Thermal Power Plants in India: Acquisition Opportunities
  2. 2. With a myriad of issues and challenges facing the power sector, many power projects in the country have either been shelved or stalled. Issues ranging from fuel shortage, fuel pricing & policy changes in exporting countries, land acquisition, environment approvals, power off take, delay in equipment supply so on and so forth are highlighted as the major reasons for the power sector slowdown. KG-D6 gas fields which once promised outputs of 80 mmscmd are giving record lows in gas production, which has adversely affected performance of gas based plants. Distressed Thermal Power Projects in India – A Reality Check Exhibit 1: Ownership-wise Quantum of Under-construction Mega Thermal Power Projects Capacity Facing Delays (in MW) Source: Infraline Research Key investors feel India’s medium-long term growth story is intact & continued investments in the power sector are inevitable for sustainable levels of economic growth. In the given business environment, distressed power projects offer some attractive investment opportunities to acquire capacity, rather than going in for green field investments. It is in this context we expect significant power assets sale and ownership changes across the power generation segment. News Excerpts “NTPC is evaluating opportunities to buy distressed power plants, we are looking at assets which have fuel linkages and all other approvals that are ready, but may not have power purchase agreements tied up” -Dr. Arup Roy Choudhary, CMD, NTPC “We would like to acquire a project of 500 MW or above as we are looking at adding scale to our generation” - Mr. Sanjay Sagar, Joint MD and CEO, JSW Energy Analysis of under-construction thermal power projects highlight that around 92 GW of thermal power projects are facing delays due to myriad issues viz. land acquisition, law & order, equipment supply, civil work, fuel supply etc. Further, majority of the power projects affected are being developed by the private sector. As per Cabinet Committee on investments, around 75 power projects have been registered with CCI complaining issues, with over INR 4 lakh crore at stake as per best estimates. * Various other reasons causing delays are identified as manpower shortages, heavy monsoons, payment issues etc.
  3. 3. Scope of Research Work Consider requesting a custom research proposal – Contact piyush.arora@infraline.com Research Approach and Methodology Comprehensive view of power generation segment and challenges faced by project developers Identifying & Profiling of Distressed Thermal Power Projects in India Phase II Analysing prospects of asset transfers and systemic challenges for acquirers Phase IIIPhase I 1 5 4 3 2 Sector Experts Central/ State Govt. Sources Literature Review Industry Interaction In-house Expertise Data Sources Identification of distressed power projects in India would be based on an in-depth assessment of power project status w.r.t fuel linkages/availability/pricing, project financing, status of clearances, regulatory approvals, land acquisition status, policy changes by Govt. of fuel exporting countries, bankability of power purchase agreement and tariffs, currency impacts, EPC problems and social aspects. Sources of Research Critical Investigative Points  Assessment of challenges faced by power project developers in India  Identification and comprehensive profiling of distressed power projects in India – Mapping of parameters  Potential opportunities for asset acquisition by investors/power companies  Critical analysis of envisaged systemic challenges associated with asset transfers & possible remedies A number of complex inter-wired issues have been affecting large number of power projects in the country. This has also led to a situation where the operational power projects have become financially less attractive and under-construction power projects facing huge delays. This situation is creating sub- optimal utilisation of installed capacity, non-performing assets and capital inefficiency. The sector therefore is in need of multiple remedial interventions. It is with this perspective, InfralineEnergy is coming out with research study on “Distressed Thermal Power Plants in India: Acquisition Opportunities”. The major focus of the work would be on identification of distressed thermal power projects in India and mapping of various key issues responsible for such situation. Besides this, the report would also highlight the potential opportunities for investors and the systemic challenges that can arise in case of ownership transfer, under the current policy, regulatory and legislative framework in India.
  4. 4. Foreword Executive Summary 1. Power Generation in India: An Overview 1.1 Key Policies and Regulatory Framework 1.2 Progress of Power Sector Reforms – Privatisation and Unbundling 1.3 Power Generation Landscape • Ownership Structure • Generation Mix • Power Availability and Performance Review • Capacity Addition – Historical and Future Projections 1.4 Demand-Supply Snapshot • Current Status and Estimates • End-us pattern: Current & Emerging 1.5 Investment in Power Generation • Trends and Outlook • Need for Private Investment • FDI Trends & Status 2. Power Capacity – Under Implementation 2.1 Power Capacity Addition – Work in Progress 2.2 Challenges faced by Power Projects under Execution Phase • Fuel Linkage, Pricing & Availability • Land Acquisition, R&R • Clearances & Regulatory Delays • Project Financing • Power Purchase Agreement • Transmission Constraints • Default in Payment from Distribution Sector • Bankability of Power Sector Value Chain 3. Mapping of Distressed Thermal Power Plants 3.1 Scrutinizing Distressed Thermal Power Plants • Commissioned • Under-construction 3.2 Distressed Thermal Power Plants – Detailed Assessment 3.3 Idle/Non-performing Capital Investments 4. Recent Policy & Regulatory Developments 4.1 Regulatory – Effect of Land Acquisition, Resettlement & Rehabilitation Bill on Power Projects 4.2 Institutional Mechanism by Ministry of Power - EGoM 4.3 Formation of Cabinet Committee of Investments (CCI) 4.4 Impact of New Companies Act 2013 on Power Generation Companies 5. Asset Acquisition, Associated Challenges and Possible Remedies 5.1 Asset Acquisition – Opportunities Ahead 5.2 Challenges to the New Owners • PPA Compliance • Existing Fuel Supply Agreements • Regulatory Hurdles • Tariff Concerns • Financial Obligation/Restructuring Annexure Abbreviations Bibliography Contents and Coverage
  5. 5. Payment Options for the Report Report Price INR 30,000 (Hard Copy) INR 45,000 (E-Copy – Single User License) INR 90,000 (E-Copy – Corporate License) Account Name Infraline Technologies India Pvt.. Ltd. Account Type Current Account Account No. 503011022657 Bank Branch IFSC Code VYSA0005030 Name of Bank ING Vysya Address ING Vysya Bank Ltd. Ground Floor Narain Manzil, Barakhamba Road, New Delhi-110 001 Payment through Cheques / Demand Draft: Payment should be made in favour of 'Infraline Technologies (India) Private Limited' through Cheques / DD payable at New Delhi (or 'at Par' cheques) and send it to the below mentioned address. Through Wire Transfer: The wire transfer instructions are available at http://www.infraline.com/WreTransferlnstructions.htm Through Credit Card: We accept Visa, Master, Amex Cards and all major Net Banking cards. Additional 7% Gateway processing charge applicable along with additional shipping/courier charges. For Payments in Foreign Currency: In case of payments to be made in USD, Euro, GBP, the conversion rates on the date of purchases will be applicable. For Sales & Support Ravinder Nagar ravinder.nagar@infraline.com +91 9873422453 +91 120 6799147 Making the Payment Contacts for the Report
  6. 6. For more details, visit http://www.infraline.com/Store/Books-and-Reports.htm Infraline Knowledge Tower, A-31 Sector -3 Noida, G.B. Nagar- 201301, Uttar Pradesh India Tel: +91 120 6799100, Mob: 9873422453 Fax: +91 120 6799101 Email: ravinder.nagar@infraline.com

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