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IEEFA India Podcast: Government-owned funders are leading backers of non-performing assets in the power sector

May 20, 2020
Kashish Shah

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.

In a new IEEFA podcast, Kashish Shah, research analyst with the Institute for Energy Economics and Financial Analysis (IEEFA), talks about why the corporations need to stop funding thermal power.

Read the report: Is India’s PFC financing a herd of white elephants?

Listen to the podcast:

Kashish Shah

Kashish Shah is an energy finance analyst with the Institute for Energy Economics & Financial Analysis (IEEFA). He specialises in financing, policy and technology matters of the Indian electricity market.

Kashish has a master’s degree in Economics from the University of Sydney and an Electronics Engineering degree from NMIMS University in Mumbai.

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