In a body blow for the power sector, the Allahabad high court on Monday refused to give any interim relief to firms facing the bankruptcy tribunal. The 180-grace period granted by the RBI ended today.
Banks were trying to come up with a resolution plan for these firms as going to the NCLT would mean large haircuts. Almost three-fourths of the Rs 3.8 lakh crore-worth stressed assets are power companies which had dragged the central bank to the Allahabad High Court.
Last week, State Bank of India Managing Director Arijit Basu said about eight power projects worth Rs 17,000 crore were expected to be resolved soon as lenders were nearing consensus on these accounts.
There are reports that lenders have identified at least 60 NPA accounts worth Rs 3.5 lakh crore against whom bankruptcy proceedings will be initiated.
