Mumbai: The striking down of the Reserve Bank of India’s (RBI’s) 12 February 2018 circular, which would have fast-forwarded defaulting companies to bankruptcy court, will now save stressed power assets from immediate liquidation, according to power sector executives. The private sector has 34 stressed projects totalling installed capacity of over 40 gigawatts (GW) and a combined debt exposure of about ₹1.74 trillion, according to a 7 March report by a parliamentary standing committee.
The committee. however, noted that of this debt exposure, ₹34,044 crore of outstanding payments could be linked to changes in government policy on fuel costs, delayed regulatory response and non-payment of dues by state-run power distribution firms (power discoms).
