New Delhi, Jul 30 (IANS): The Central government on Sunday decided to set up a high-level empowered panel under the Cabinet Secretary to resolve issues plaguing the power sector and revive stressed assets.

A Power Ministry statement here said that the empowered committee will also have representatives from the Ministries of Railways, Finance, Power, Coal and the financial institutions having major exposure to the power sector.

"With a view to resolve the stress and revive such assets, the government has decided to set up a high-level Empowered Committee headed by the Cabinet Secretary.

"The committee will look into the various issues with a view to resolve them and maximise the efficiency of investment including changes required to be made in the fuel allocation policy, regulatory framework, mechanisms to facilitate sale of power," it said.

The panel will also examine "changes required in the provisioning norms/ Insolvency and Bankruptcy Code (IBC), Asset Restructuring Company (ARC) Regulations and any other measures proposed for revival of stressed assets so as to avoid such investments becoming non performing asset (NPA)".

The power sector accounts for the bulk of the NPAs accumulated in the Indian banking system which have crossed the staggering level of Rs 9 lakh crore.