RBI not to budge on new norms for stressed power companies

RBI not to budge on new norms for stressed power companies

The Reserve Bank of India has stuck to its stand that stressed power assets can be revived within the time frame spelt in its controversial February 12 circular, and that the new norms do not need any relaxation, which the industry has demanded.

The issue was discussed at a meeting on stressed power assets between banking secretary Rajiv Kumar and various stakeholders, including RBI, which was represented by its executive director Sudarshan Singh. The meeting that lasted four hours was convened on the directions of the Allahabad High Court.

Kumar said while RBI stuck to its stand, private power companies sought easing of revised norms, citing the stress in the sector due to factors beyond their control. All the stakeholders have been asked to make final submissions by Monday, Kumar said after the meeting. The finance ministry will compile the discussions and submit them before the court.

The issue has become controversial as private companies say they are suffering for reasons beyond their control, while principal economic adviser Sanjeev Sanyal is understood to have sought changes in the norms. Read More

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