The Reserve of India’s decision to keep interest rates steady on Friday hit forex market hard, as the rupee fell below the 74 mark against the dollar. However, the currency recovered some of the lost ground to settle at 73.77, down 18 paise.
The ministry of new and renewable energy (MNRE) is expected to write to RBI, seeking to bring renewable energy projects under priority sector lending, senior officials said.
The Reserve Bank has refused to be part of a high-level committee headed by the Cabinet Secretary which was constituted to resolve stress in the power sector as it is not willing to relax norms to deal with bad loans, according to a source.
The Supreme Court’s oral order on Tuesday this week in the private power producers case led to conflicting views among experts. The written order, which was made available a day later, clarifies the situation on whether lenders can initiate insolvency proceedings
Power companies have welcomed the Supreme Court’s stay on RBI circular and said the verdict will prevent 13Gw of stressed power plants from insolvency. “SC order has provided a great relief to Power sector stressed assets
Representatives from the Reserve Bank of India did not attend the first meeting of the high-level empowered committee, headed by the Cabinet Secretary, tasked with addressing the issues of stressed thermal power projects.
The government is not likely to use its powers to issue directions to the Reserve Bank of India (RBI) to seek relief for stressed power plants, a top finance ministry official said.
The Reserve Bank has been invited to attend the meeting of the empowered committee for resolution of stressed power assets to be held on August 31, Union minister R K Singh said today.
The Reserve Bank expects India’s economic growth rate to accelerate to 7.4 per cent in the current financial year on pick up in industrial activity and good monsoon.
Lenders to about 30 stressed power assets will refer them to bankruptcy courts, after the Allahabad High Court denied any relief to the sector from the Reserve Bank of India’s February 12 circular setting a 180-day deadline for resolutio