Insolvency proceedings can be initiated against state-owned discoms: Power Ministry
Ministry of Power has affirmed that insolvency proceedings can be initiated against state-owned electricity distribution as well as generation firms in case of default of payment by the creditors.
The ministry clarified its stand in a letter written to Secretary, Department of Legal Affairs, earlier this month.
The clarification came in reference to a case filed by Tamil Nadu Generation and Distribution Company (TANGEDCO) against ClRP (Corporate Insolvency Resolution Process) proceedings initiated by South lndia Corporation Pvt Ltd in High Court of Madras.
