Skip to main content

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: https://anchor.fm/ieefaasiapacific/episodes/INDIA-ENERGY-TALKIES-Government-owned-funders-are-leading-backers-of-non-performing-assets-in-the-power-sector-ee8ikh

Kashish Shah

Kashish Shah is a Senior Research Analyst with Wood Mackenzie. Previously,
he worked as an Energy Finance Analyst with the Institute for Energy

Go to Profile

Join our newsletter

Keep up to date with all the latest from IEEFA