FICCI recommends lower payment for upgrading stressed ‘power’ accounts

The Federation of Indian Chambers of Commerce and Industry (FICCI) has suggested a lower payout to upgrade a stressed account in a recommendation to the Reserve Bank of India.

FICCI recommended the upgrade of a default account under loan restructuring upon payment of 10 per cent of outstanding principal and capitalised interest, against the earlier 20 per cent, to enable quicker asset turn-around considering dependence on regulatory decisions and payments by State Discoms.

“As is known, the power sector is besieged by problems arising out of unanticipated events and circumstances not within its control,” a FICCI statement said.