PFC's power drive flickering under record debt burden, govt scheme

The state-run financer for generators and distributors is struggling under a record debt burden even as it is being asked to underwrite the government's latest scheme to rescue inefficient discoms

Union Bank of India failed to find buyers at an auction for Rs 2,077 crore of debt exposure to KSK Mahanadi Power, despite lowering the reserve price, reports say, reflecting the value the market ascribes to power sector debt.

So, it’s no surprise that New Delhi is concerned over mounting dues by state-run utilities to generators. At over Rs 1.3 trillion — sufficient to cover Rs 6,000 in annual payments to farmers under PM Kisan for two years — the dues keep rising despite several attempts at reforms.

Lost in all that noise is the money that India’s power sector