12 min
India: Government-owned funders are leading backers of non-performing assets in the power sector IEEFA Energy Chat
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- Non-Profit
Over the years, the government-owned Power Finance Corporation (PFC) and the Rural Electric Corporation (REC) have been lending extensively to coal-fired power projects. In fact, over half of their total loan book is exposed to thermal power.
Yet thermal power in India has become a less secure investment, as the two corporations have found.
And now they are carrying an extensive burden of non-performing assets on their balance sheets, amounting to roughly US$6.8 billion dollars as of December 2019.
To talk about this further, I’m joined by Kashish Shah, research analyst with the Institute for Energy Economics and Financial Analysis (IEEFA).
Read the IEEFA report: Is India’s PFC financing a herd of white elephants?
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The Institute for Energy Economics and Financial Analysis is a public interest think tank. This industry overview should not be taken as personal financial advice. Please refer to our website at ieefa.org for our disclosures and mission statement.
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Send in a voice message: https://podcasters.spotify.com/pod/show/ieefaasiapacific/message
Over the years, the government-owned Power Finance Corporation (PFC) and the Rural Electric Corporation (REC) have been lending extensively to coal-fired power projects. In fact, over half of their total loan book is exposed to thermal power.
Yet thermal power in India has become a less secure investment, as the two corporations have found.
And now they are carrying an extensive burden of non-performing assets on their balance sheets, amounting to roughly US$6.8 billion dollars as of December 2019.
To talk about this further, I’m joined by Kashish Shah, research analyst with the Institute for Energy Economics and Financial Analysis (IEEFA).
Read the IEEFA report: Is India’s PFC financing a herd of white elephants?
____
The Institute for Energy Economics and Financial Analysis is a public interest think tank. This industry overview should not be taken as personal financial advice. Please refer to our website at ieefa.org for our disclosures and mission statement.
---
Send in a voice message: https://podcasters.spotify.com/pod/show/ieefaasiapacific/message
12 min