Earlier in the day, Minister of State for Power Bharatsinh Solanki had said the slow pace of capacity addition in India's power sector can be attributed to project viability, marketing risk and inadequate fuel supplies.

This is coupled with operational inefficiency, with a gap of Rs.500,000 crore in financing of capacity addition projects is a major hurdle to the growth,' Solanki said.

'In order to achieve financial closure in a time-bound manner, it is suggested to increase the exposure limit of banks and financial institutions for financing power sector companies,' Solanki added.

'The limit should be increased from 20 percent to 30 percent for individual borrowers and from 50 percent to 70 percent for group borrowers. In addition, it is suggested that ECBs by financial institutions like PFC and REC may be brought under the automatic route.'