The Supreme Court’s order on Tuesday quashing the February 12 circular of the RBI has come as a huge breather to the power sector which is staring at 66,000 mega watts (MW) of stressed power assets worth ₹1.8 lakh crore.
“[The] SC order has provided great relief to the power sector’s stressed assets. This would provide time for bankers to finalise the resolution plan for about 13 GW of projects which are presently in their final stages, and a high-level empowered committee under the Chairmanship of the Cabinet Secretary to submit its report on corrective actions that the government intends to initiate to mitigate stress factors,” Ashok Khurana, director general, Association of Power Producers (APP), told The Hindu.
The RBI circular had mandated banks to either immediately resolve all bad loans above ₹2,000 crore or file for insolvency resolution under the IBC.
