34 Power Projects Defaulted On Loans

34 Power Projects Defaulted On Loans

The Finance Ministry refused to list out 34 power projects that defaulted on bank loans worth crores of rupees to a Parliamentary panel on Energy on Thursday.

Earlier on two occasions, the Reserve Bank of India had refused to divulge the names of the loan defaulters. Last year, in connection with a PIL petition filed by the NGO, the Centre for Public Interest Litigation, the RBI had submitted a list of 57 defaulters who owe banks ₹85,000 crore, in a sealed cover to the apex court. The RBI had then argued that the rules did not permit disclosure of names held in fiduciary relationship. On the same grounds, the RBI, in May this year, again refused to entertain an RTI application demanding the names of loan defaulters.

The Standing Committee on Energy, which was discussing non-performing assets (NPA) in the power sector, hauled the government over coals for the “casual” briefing by officials of the Department of Financial Services, the RBI and the banks that financed these power projects.

At a previous meeting of the committee, the Department of Financial Services had said that at least 34 power projects came under the category of non-performing assets. Read More…

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