Emission control: Bank wary of funding stressed power plants- Source, Business line

• Coal-based power producers may find it difficult to meet the new emission standards as banks are reluctant to give loans to buy equipment required to control emission.
•  Bankers fear that if they lend more money to the thermal power producers (TPPs), which is stressed, for upgrading the plant and after they don't recover the money, the bank will be held responsible. 
• To meet emission standard, TPPs have to install or upgrade various emission control system.
• For that they require more investment.
• If the power sector accounts are getting sorted out and management changes has happened then the bank won't mind financing installation of emission control equipment.
• The main problem in not giving the loan is that no public sector undertaking want to take decision on taking over stressed assets, with the bank.
• There is the fear of CVC( Central vigilance  commission) and CBI.