Lok Sabha Question No. 297 (UNSTARRED), answered on 2018-07-19
Subject: Samadhan Scheme
Ministry: POWER
Asked by: SUKENDER REDDY GUTHA

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.297

## TO BE ANSWERED ON 19.07.2018

## SAMADHAN SCHEME

297.   SHRI GUTHA SUKENDER REDDY:

Will the Minister of POWER be pleased to state:

- (a) whether  the  Government  is  planning  to  come  up  with  Samadhan Scheme  (Scheme  of  Asset  Management  and  Debt  Change  Structure)  to propose  sale  or  takeover  of  the  stressed  assets  of  the  power  plants  to prevent their liquidation;
- (b) if so, the details thereof;
- (c) whether the task has been assigned to SBI to finalise the scheme, if so, the details thereof;
- (d) the  details  of  the  power  plants  which  have  been  identified  to  be brought under Samadhan Scheme; and
- (e) whether the consent of the promoters of the power plants has been taken in this regard and if so, the details thereof?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER AND NEW & RENEWABLE ENERGY

( SHRI  R. K. SINGH )

- (a) to (c) : Department  of Financial Services has informed that the Samadhan  scheme  has  been  drawn  by  State  Bank  of  India  (SBI)  for lenders to resolve stressed assets in the Power Sector. The details of the scheme as received from State Bank of India, are annexed at Annexure-I
- (d) : As intimated by State Bank of India, the list of power plants as identified by them in this regard is annexed at Annexure-II.
- (e) : Any debt restructuring scheme, including  Samadhan, is drawn in compliance with the Revised Framework of Reserve Bank of India dated 12th February, 2018 and change in ownership is made if circumstances so warrant.

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## ANNEXURE-I

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF UNSTARRED  QUESTION  NO.  297  TO  BE  ANSWERED  IN  THE  LOK SABHA ON 19.07.2018.

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Samadhan  is  an  initiative  taken  by  the  lenders.  It  involves change of ownership along with change in debt repayment schedule. The lenders will also keep part equity in the projects as it may provide upside in future. The individual banks/FIs at their discretion can use this scheme as a means to resolve stressed power projects. Salient features of the scheme are as follows:-· Debt  restructuring  scheme  to  be  prepared  in  compliance  with  the Revised Framework of RBI. · As  a  prudent  measure,  the  existing  promoters  may  be  asked  to reduce their shareholding in the project company. · Lenders  may  determine  sustainable  and  un-sustainable  portion  in the existing debt. · Un-sustainable  portion  being  held  by  lenders  may  be  converted  to equity/ equity like instruments. · Ownership  of  the  company  may  be  given  to  a  new  investor (strategic/financial investor or Asset Management Company) as and when the  lenders  get  a  good  offer  with  some  equity  stake  remaining  with lenders and existing promoters. · Project  operations  may  be  given  to  an  Operations  &  Maintenance Contractor (OMC) having requisite experience and credentials in operating power plants. · Resolution Plan (RP) will be submitted to accredited rating agency for Independent Credit Evaluation (ICE) and Ratings will be obtained. · New investor, who can buy upto 51% equity, after the lock-in period of  3  years,  may  sell  their  equity  shareholding  with  prior  approval  of lenders. Based upon the sustainable  debt levels  and  with  RP-4  rating  from rating agencies, the lenders may decide if this scheme is a better option

- as compared to outright sale of project (either through NCLT or outside).

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ANNEXURE-II ANNEXURE REFERRED TO IN REPLY TO PART (d)  OF  UNSTARRED QUESTION  NO.  297  TO  BE  ANSWERED  IN  THE  LOK  SABHA  ON

19.07.2018. *************** List of 11 projects identified for resolution under SAMADHAN

|   Sl. No. | Project/Company                          |   Capacity | Lead Institution   |
|-----------|------------------------------------------|------------|--------------------|
|         1 | Avantha Power (Jhabua)                   |        600 | Axis Bank          |
|         2 | Coastal EnergenPvt Ltd.                  |       1200 | SBI                |
|         3 | Ideal Energy                             |        270 | Canara Bank        |
|         4 | Jaypee Power Ventures Ltd.               |       1820 | ICICI Bank         |
|         5 | Jindal India Thermal Power Ltd.          |       1200 | PNB                |
|         6 | KSK Mahanadi Power Co. Ltd.              |       2400 | PFC                |
|         7 | Prayagraj Power Generation Company Ltd.  |       1980 | SBI                |
|         8 | RKM Powergen                             |       1440 | PFC                |
|         9 | SKS Power Generation (Chhattisgarh) Ltd. |        600 | SBI                |
|        10 | Essar Mahan                              |       1200 | ICICI              |
|        11 | GMR (Chhattisgarh) Energy Ltd.           |       1370 | Axis Bank          |

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