The United States has said there is erosion of confidence within the US business community about investment in the Indian power sector and it will be difficult to restore it unless structural issues are addressed, Minister of State for Power Jayawanti Mehta told the Rajya Sabha on Wednesday.

US Assistant Secretary of Energy Vicky Bailey made these comments at a symposium during a visit by Mehta to the US in October last.

Bailey said it would be extremely difficult for US investors to invest in India unless structural issues in the power sector are addressed. The loss of confidence was due to certain contractual and payment problems being faced by existing independent power producers with US investments, the minister said in a written reply.

UNI