Power ministry seeks change in RBI order on stressed units

Power ministry seeks change in RBI order on stressed units

Stressed power assets have got a major boost as the power ministry has strongly recommended substantial changes to the RBI’s controversial Feb 12 circular on loan defaults that industry says will send capacity of 30,000 megawatts into liquidation, while the coal ministry has assured higher fuel supply to thermal plants with the help of auctions.

The power ministry has told the banking secretary that the sector’s stressed projects should not be categorised as stressed in 90 days, while the deadline of 180 days to resolve a bad loan, after which liquidation process is immediately triggered, should be extended to 270 days, a government official told ET.

The regulatory and policy issues are being worked upon and will be sorted out by the power ministry. “If the RBI circular continues in the present form, all these efforts will become futile,” he said.

“The power ministry is also likely to write to the state distribution utilities asking them to clear about Rs 14,000 crore dues to electricity generating stations,” he said. Read More

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