RBI on board in empower panel meeting on stressed power assets: Minister 

BY KNOWLEDGE SAI·, JANUARY 10, 2019

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 government last month set up the committee chaired by Cabinet Secretary with representatives from ministries of railways, finance, power, and coal, and lenders having major exposure to the power sector. 


On RBI's role in resolution process, the Union power minister said, "RBI has been called to atten .. this meeting on August 31.

1. Stressed power assets worth around Rs 1.74 lakh crore are feared to undergo bankruptcy proceedings after the Allahabad High Court on Monday refused to give any interim-relief to private power companies from the RBI's February 12 circular on new NPA framework. 

The high court also suggested that the power ministry should invite a senior representative of the RBI as a member of the empowered committee. It has asked the panel to submit report in two months from the date of formation. 

The Reserve Bank in its February 12 circular had said if a resolution was not found by August 27, NPA accounts should be sent to bankruptcy courts. 

The minister, however, pointed that he does not see stress to spread in the power sector. 

"The committee will deliberate on it (NPA resolution). I don't see stress cascading or anything like that. Good thing is that demand is increasing. So there is more space to generate 

extra (electricity)." The RBI's new framework provides that lenders have to provide for resolution plan within 180 days in case of large account of Rs 2,000 crore and above even at the default of a day. 

In the absence of resolution plan the project would go to National Company Law Tribunal (NCL ..