With the Supreme Court’s verdict on the maintainability of RBI’s February 12 circular slated to be pronounced on Tuesday, independent power producers, in their supplemental submission to the apex court, have highlighted “inconsistencies” in the RBI’s stance on inter-creditor agreement (ICA).
The industry also reiterated how payment indiscipline and preferential treatment to PSUs are causing stress in the sector. The SC had reserved the order on March 14 and had asked the parties to submit their additional inputs within March 25.
The RBI has endorsed ICA, which requires approval of 66% of lenders and relaxes the earlier requirement of 100% approval as a possible debt resolution mechanism in its submissions to the SC.
