Independent power producers have urged the Reserve Bank of India (RBI) to extend the last date for finalising resolution plans for defaulting projects to November 16 from August 27, as the central bank itself delayed releasing the list of authorised credit rating agencies, an indispensable part of the process.
As part of its effort to contain rising non-performing assets (NPAs), the RBI has started scrutiny of 200 large accounts to assess level of stress and provisioning done against them by respective banks.
Insolvency concerns might have caused further distress in a large number of infrastructure companies but the power sector is being dealt with by the government differently.
The Supreme Court did not agree to a plea for staying the hearing, scheduled for this Thursday, in the Allahabad High Court (HC) on the Reserve Bank of India’s (RBI’s) bankruptcy proceedings on stressed power sector assets.
The government may approach the Reserve Bank of India to extend the deadline for management switchover of stressed power plants in the case of projects for which lenders have identified new promoters, an official said.
Banking secretary Rajiv Kumar will hold a meeting with banks, power companies, and senior officials of Reserve Bank of India and related ministries on June 21 to discuss the banking regulator’s new norms on stressed assets in relation with power projects, as directed by the Allahabad High Court.
Anecdotes such as better-than-expected GDP data and rising crude oil prices, which have posed additional upside risks to headline inflation, are all pointing towards a more hawkish tone from the Reserve Bank of India (RBI) in its upcoming meeting, which is scheduled on June 4-6.
The Allahabad High Court ruled that a power company can’t be taken to bankruptcy court for not repaying loans unless it has been declared a wilful defaulter, recognising the stress that the sector is under. It also directed the finance secretary to meet power producers in June to discuss their financial woes.
India’s economy will grow 7.3% in the current financial year and gain pace to 7.5% next year as the “temporary drag” from demonetisation and the goods and services tax fades away, Fitch Ratings forecast.
Some nights before he goes to sleep, Anil Agarwal says he dictates memos on a small voice recorder. The next day, he gives it to his secretary for follow up. “At that hour, it is better to record anything that comes to mind otherwise you may forget,