The absence of a legal framework in dealing with PPP contracts is resulting in a lot of stress in the infra sector <\/p>\n
The Supreme Court has before it petitions moved by many private thermal power companies against the Reserve Bank of India\u2019s direction to banks to initiate insolvency proceedings against loan defaulters.<\/p>\n
The power companies argue that their under performance is due to systemic issues; whereas the RBI\u2019s argument is that the banking regulator cannot discriminate between sectors when dealing with loan defaults.<\/p>\n
There is no easy solution. The 40th Standing Committee on Energy estimated that loans to two- thirds of the country\u2019s coal-based power capacity are under stress. Banks are hesitant to take any further risk on the thermal power sector. Yet insolvency may result in the power companies being sold off piece by piece, leading to recovery of a fraction of the crores of rupees poured into them. Long-term ramifications for the country\u2019s power-generation capacity and investor confidence in the sector are obvious.<\/p>\n","protected":false},"excerpt":{"rendered":"
The absence of a legal framework in dealing with PPP contracts is resulting in a lot of stress in the infra sector The Supreme Court has before it petitions moved by many private thermal power companies against the Reserve Bank of India\u2019s direction to banks to initiate insolvency proceedings against loan defaulters. The power companies argue that their under performance is due to systemic issues; whereas the RBI\u2019s argument is that the banking regulator cannot discriminate between sectors when dealing with loan defaults. There is no easy solution. The 40th Standing Committee on Energy estimated that loans to two- thirds […]<\/p>\n","protected":false},"author":40,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130],"tags":[],"class_list":["post-259735","post","type-post","status-publish","format-standard","hentry","category-newspapers"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/259735","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=259735"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/259735\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=259735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=259735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=259735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}